“It is looking more likely that we will see a rate hike this year, and September is a good possibility”, said Richard Sichel, chief investment officer of Philadelphia Trust Co in Philadelphia.
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Technicals see spot gold hitting $1,308 * Series of USA data in focus (Adds comments, updates prices) By Sethuraman N R Aug 30 (Reuters) – Gold seesawed within a narrow range on Tuesday on the back of a steady dollar, as investors waited for cues on the timing of US interest rate hike from nonfarm payroll data, due later this week. Vice Chair Stanley Fischer, on the same day, suggested on CNBC that a move as soon as next month could be possible. Friday’s nonfarm report for August, as well as other data, could reinforce hawkish messages from Yellen and other Fed officials.
The CME Group’s FedWatch tool showed the market pricing in more than a 30 per cent chance of a rise in September, up from 18 per cent before Yellen and her deputy Fischer spoke.
The pace of rate hikes is heavily dependent on U.S. economic data. “It’s clear from the Fed’s actions this year that it is aware of global risks, the impact of its own actions on those risks and any potential blow back to the US economy and of the impact of a rising USA dollar in doing some of its work for it”.
The dollar index, which tracks the greenback against a basket of six major rivals, added 0.2 per cent to 95.714, though it remained shy of the previous session’s high of 95.834 which was its highest since August 12. It held steady at 95.518 on Monday.
The dollar edged down 0.1 percent to 101.78 yen, moving away from Monday’s high of 102.39, while the euro also inched 0.1 percent lower to 113.87 yen. Japanese household spending and retail sales data for July are due on Tuesday. Spot gold slipped 0.2 percent at $1,320.79 per ounce at 0624 GMT. In commodities, the rally in the dollar and concerns about growing output after exports from Iraq in August exceeded July levels drove crude lower.
Oil prices fell on Monday as the US dollar rose following relatively bullish talk from the US Federal Reserve. Iran also said late last week that it would only cooperate in upcoming producer talks in September if other exporters recognized Tehran’s right to regain market share lost during global sanctions that were only lifted in January.
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North Sea Brent also fell 66 cents to settle at US$49.26 per barrel on the Intercontinental Exchange in London.
