Gold prices ended the U.S. day session moderately lower Monday, as the marketplace is increasing the odds that a U.S. interest rate hike from the Federal Reserve could come yet this year—and as early as next week. December Comex gold was last down $7.00 an ounce at $1,327.60. December Comex silver was last down $0.363 at $19.005 an ounce.
The world marketplace is once again seemingly consumed by “Fed speak” and comments from other world central bank officials. Comments from Federal Reserve Governor Lael Brainard on Monday afternoon favored the dovish camp on U.S. monetary policy. Markets gyrated a bit after her comments, but then settled down quickly to trade at price levels close to where they were before her comments hit the news wires.
While gold wasn’t certain about its stance after Brainard’s remarks, equities bounced back after Friday’s worry-fest that was stoked by fears Lael Brainard had turned suddenly hawkish. She didn’t and now Friday’s Henny-Pennys look silly.
The U.S. dollar is starting the new trading week relatively flat; however, currency analysts at BNP Paribas are expecting to see higher prices, forecasting the Federal Reserve will raise interest rates next week. . “We continue to believe the Fed and the data have provided the ground work for a hike in September, and would look for markets to move closer to pricing this in the week ahead, supporting the USD broadly,” they say. As of 8:10 a.m. EDT, the U.S. Dollar Index was trading at95.245, relatively unchanged on the day.
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