GOLD HIGHER, STILL LOOMS LOW ON RATE INCREASE POSSIBILITY
The Gold price is slightly up Friday but is still on track for its biggest weekly drop, as U.S. data supports a near-term interest rate increase. Despite the recent turmoil in China, an increase is still expected. “The big question for next week is whether the anxiety that crept into the market on August 10 when China devalued its currency is going to continue,” Saxo Bank senior manager Ole Hansen said. “We are only a few weeks away from the [U.S. Federal Reserve] policy meeting and that is going to attract a lot of attention as well.”
Lower metal prices haven’t spiked demand in Asia, as they are still concentrating on stocks. Regardless, INTL FCStone analyst Edward Meir said in a note, “For all the talk of market turmoil, it is important to note that the Fed does not typically look at overseas developments to make its rate decision and we don't think this time will be any different.” Spot Gold was up 0.4 percent at $1,129.80 an ounce Friday morning, but was down 2.6 percent for the week. The metal has lost more than 3 percent since hitting a seven-week high on August 21.
At 9:41 A.M. (ET), the APMEX Precious Metals spot prices were:
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