Pepperstone Analyst Notes Gold Needs $4,275 Break Amid FED Hike Expectations
What happened
Gold recovered from a two-month low as the US Dollar eased from an 18-month high. Pepperstone analyst Chris Weston stated that gold remains in a seller's market until it breaks above $4,275. Weston also noted that a December Federal Reserve interest rate hike is seen as 80% likely.
From investinglive.com
Why it matters
The market view is influenced by expectations of Federal Reserve monetary policy, specifically potential rate hikes. Weston noted that rising long-dated yields could signal fiscal or credit strain, potentially allowing gold to detach from real yields.
From investinglive.com
Who's involved
- PepperstoneAustralian online broker that employs Chris Weston
- Chris WestonAnalyst whose views are influenced by Federal Reserve hike expectations
Who could feel it
Possible knock-on effectsThese are possibilities Brind reasoned out, not predictions, and not advice. Most are not stated in any report.
- US Dollar (Next day)Speculative
The market price of gold could be affected by the easing of the US Dollar from an 18-month high.
- U.S. TreasurySpeculative
The price of gold might be weighed down by rising U.S. Treasury yields, which could signal fiscal or credit strain.
- Middle EastSpeculative
Escalation in the Middle East could impact gold prices through higher oil costs, inflation, and rate expectations.
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The entities involved
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Pepperstone
Australian online broker
Nothing else this week.
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FED
business