| Gold has been lost for direction in recent weeks, moving sideways in the range of $1,060-1,080/ounce. Last week, it ended at $1,074/ounce, down 1.1 per cent. But the action may now begin. The Fed may be all set to bite the bullet. In its meeting on December 16, expectation is that the central bank may increase rates by about 25 basis points for the first time in seven years.
The action would be supported by strong US data. US unemployment rate has come down to 5 per cent from about 9.5 per cent in 2009. The increase in average hourly wages paid to workers is at 2.3 per cent (annualised) compared to 2-2.1 per cent for very long. Inflation is at 0.2 per cent, but core inflation excluding fuel and food is 1.3 per cent, closer to Fed’s 2 per cent target...............................................Full Article: Source
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