Gold, Silver Rise as Softer Data Cuts Fed-Hike Odds
Gold and silver prices rose in early U.S. trading Monday as a softer U.S. dollar and reduced Federal Reserve rate-hike expectations supported precious metals.
The latest positioning still favors a September Fed hold, but this morning's Empire State survey added a firmer activity and price-pressure signal to an otherwise softer data run.
The New York Fed's general business conditions index rose 5 points to 20.6 in August, its highest reading in more than 4 years, while new orders printed at 17.3, shipments at 11.7, and prices paid rose 6 points to 58.6.
This strength follows last week's weaker July retail sales, softer CPI, flat headline PPI, and weaker consumer sentiment, leaving markets with roughly a 30% to 31% probability of a September rate hike.