Sign up United Kingdom
Proactive Investors - Run By Investors For Investors

Gold unsettled ahead of Jackson Hole meeting

Gold was under pressure ahead of the meeting of the world’s central bankers at Jackson Hole in Wyoming.
picture of gold being poured
Gold has slipped ahead of central bank meeting

Gold was under pressure ahead of the meeting of the world’s central bankers at Jackson Hole in Wyoming.

Traders fear Federal Reserve chair Janet Yellen may use the meeting to indicate that US interest rates are going up.

Comments from vice-chairman of the Federal Reserve, Stanley Fischer, that US GDP growth would pick up in coming quarters added to the unease among gold bugs.

Precious metals tend to move in the opposite direction to US interest rates and “The market appears to be interpreting yesterday’s speech by Fed Vice Chairman Stanley Fischer as ‘hawkish’” said Commerzbank.

“According to the Fed Fund Futures, the probability of a US Federal Reserve rate hike this year is now at over 60% again,” it added.

The firm US dollar, rising bond yields and significantly higher rate hike expectations in the US are also weighing on silver, said the broker.

At US$18.91 per oz, the price is close to a seven-week low with the gold/silver ratio back above 70 again for the first time since the end of June.

A couple of hours in to US trading, spot gold was US$3 lower at US$1,338 having perked up a little since the start of the day.

Silver was 2% lower at US$18.91, while platinum shed US$6 to US$1,104. 

No investment advice

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person. You further understand that none of the information providers or their affiliates will advise you personally concerning the nature, potential, advisability, value or suitability of any particular security, portfolio of securities, transaction, investment strategy, or other matter.

You understand that the Site may contain opinions from time to time with regard to securities mentioned in other products, including company related products, and that those opinions may be different from those obtained by using another product related to the Company. You understand and agree that contributors may write about securities in which they or their firms have a position, and that they may trade such securities for their own account. In cases where the position is held at the time of publication and such position is known to the Company, appropriate disclosure is made. However, you understand and agree that at the time of any transaction that you make, one or more contributors may have a position in the securities written about. You understand that price and other data is supplied by sources believed to be reliable, that the calculations herein are made using such data, and that neither such data nor such calculations are guaranteed by these sources, the Company, the information providers or any other person or entity, and may not be complete or accurate.

From time to time, reference may be made in our marketing materials to prior articles and opinions we have published. These references may be selective, may reference only a portion of an article or recommendation, and are likely not to be current. As markets change continuously, previously published information and data may not be current and should not be relied upon.

© Proactive Investors 2018

Proactive Investors Limited, trading as “Proactiveinvestors United Kingdom”, is Authorised and regulated by the Financial Conduct Authority.
Registered in England with Company Registration number 05639690. Group VAT registration number 872070825 FCA Registration number 559082. You can contact us here.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use