Gold Prices Tumble Amid Rising US Rate Hike Expectations
Gold futures on Bursa Malaysia Derivatives closed lower today, tracking the weaker performance on the US Commodity Exchange (COMEX), amid rising expectations of a US interest rate hike following US Federal Reserve Chair Kevin Warsh's recent speech at the Jackson Hole Symposium.
According to Quintex Intel global strategist Stephen Innes, gold prices closed weaker today mainly because London traders sold into the market as soon as they came in, with the probability of a United States' interest rate hike moving back above 65 per cent.
Innes attributed the trend to positioning adjustments rather than a major change in the outlook for gold. Traders are now waiting for Friday's nonfarm payrolls report, which is the next important potential hawkish US Federal Reserve signpost ahead of the Federal Open Market Committee's meeting.