Federal Reserve Chair Janet Yellen is set to deliver a speech on Friday during the US central bank’s annual summer retreat in Wyoming. Many analysts expect Yellen to provide some insight into the Fed’s plans regarding interest rates. Meanwhile, one central bank official is helping push down gold prices on Thursday, noting that a rate hike is warranted right now.
December gold futures tumbled $4.30, or 0.32%, to $1,325.40 an ounce at 17:00 GMT. Gold prices have not traded this low since the end of July, when Brexit fears were simmering and positive global economic data were released.
Silver also slipped during Thursday’s trading session. September silver futures dipped $0.06, or 0.33%, to $18.49 an ounce. Silver prices have not been this low since the middle of July.
Precious metals prices are being hit after Kansas City Fed President Esther George made hawkish comments pertaining to interest rates. George, who was in favor of a rate hike during the Federal Open Market Committee (FOMC) meeting in July, told Bloomberg there is a plethora of positive US economic data.
When I look at where we are with the job market, when I look at inflation and our forecast for that, I think it’s time to move.
Gold futures also started off the trading session lower after new economic reports gave the Fed further ammunition for a rate hike. The weekly jobless benefits claims declined to 261,000, which suggests that fewer American workers are losing their jobs towards the end of the summer. Moreover, US
Traders will be combing through Yellen’s remarks on Friday. She is scheduled to talk about GDP policy and consumer sentiment.
The odds of a rate hike next month have increased over the past week. According to the CME Group FedWatch tool, there is a 24% chance of a rate hike in September.
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