22.09.2015 - Gold Declines as Comments From Fed Officials Fuel Rate Concerns
Gold futures fell for the second time in three sessions as comments from some Federal Reserve officials fueled concern that the central bank may raise interest rates this year. Three policy makers argued for lifting the Fed’s key rate before year-end, days after a September increase was rejected amid financial-market volatility and concern about an economic slowdown in China. Tighter monetary policy curbs demand for gold because it doesn’t pay interest, unlike competing assets. The comments counter bets by many traders that the Fed will wait until 2016. Interest-rate futures now give just a 20 percent chance of an increase at the Fed’s October meeting, and almost 49 percent probability of a move by December, according to data compiled by Bloomberg. On Friday, odds of a December move were less than 46 percent...............................................Full Article: Source
Print