(Kitco News) – Gold remains conflicted by the ongoing dialogue surrounding the next increase in Fed rates. Federal Reserve Vice Chairman Stanley Fischer has indicated that the Fed’s target levels for inflation and growth suggest that the Fed should raise rates sometime this year. Chair Janet Yellen is expected to give an upbeat report on the U.S. economy later this week. It is highly expected that if the jobs report on September 2nd shows a continued strong number, that even September may be on the table. We continue to remain steadfast in our view that the Fed remains on hold in September and trading gold, on the short side on the basis of December being the target date for a move, is much too premature. That said, we are still in a very thin market, but expect the range to be $1,328 – $1,355 to continue ahead of Yellen’s speech on Friday.
By Peter Hug, Kitco Metals Global Trading Director; phug@kitco.com
