Gold futures leaped over $11 per ounce this morning from the European trade amid expectations the Federal Reserve will not raise interest-rates at their next policy meeting this month. Gold futures are up over $17.50 per ounce today currently trading at $1,344.4 per ounce at the New York Commodity Exchange.
In the wake of last week’s disappointing US employment data, investors are reportedly pricing in a “27%” chance for a rate-hike when the Fed’s meet on September 20-21 — according to Investing(dot)com’s “Fed Rate Monitor Tool.” Although expectations for a near-term rate hike this month have been scaled back, investor sentiment still heavily favors at least one more rate hike before year’s end.
“Sentiment in the gold trade feels as if the Federal Reserve ‘needs’ to hike interest-rates, however the data just doesn’t support that action at this time,” said Barb Levy, chief director for The Fox Group’s futures division in Chicago, sharing her fundamental assessment of the gold futures market. Levy added, “If the rates were to be hiked later this month, it would force investors to rethink the Fed’s stance on how they will revive this economy.”
Despite today’s spike higher, the trend for gold futures remains down. If gold futures were to trade for two more days higher, then this could possibly resume the trend higher toward the July $1,377 high.
ALL COMMENTARY IS CONSIDERED OPINION & VIEWS FROM THE AUTHOR AND NOT A SOLICITATION OF ANY SECURITIES. THE RISK OF LOSS IN TRADING COMMODITY INTERESTS CAN BE SUBSTANTIAL. YOU SHOULD THEREFORE CONSIDER WHETHER SUCH TRADING IS SUITABLE FOR YOU IN LIGHT OF YOUR FINANCIAL CONDITION.