Gold gets to 2-week peaks after Fed comments
On Thursday, gold contributed to overnight revenues during European trade, after the Fed didn’t provide any indications whether it would lift its rates at its upcoming gathering in September.
In New York, December delivery gold futures climbed to a session peak of $1,348.70 per troy ounce. By the way, yesterday, gold achieved $1,350.00, the most impressive value since July 12.
On Wednesday, the number one US financial institution left interest rates intact unchanged and told that near-term risks to the American economic outlook had headed south. However, the US major bank stopped short of indicating a near-term rate lift.
Besides this, currently Fed funds futures are pricing in an 18% probability of a rate lift by September. December odds were at approximately 46%, which is down from 52% a bit earlier in the week.
The most popular precious metal is extremely sensitive to moves in American interest rates. Obviously, a gradual path to higher rates is considered to be a less significant threat to gold prices than a swift series of surges.