Gold price move points to Fed rate hike in 2016 – CNBC
Spot gold traded flat Thursday, off its three and a half month high of $1,184, down from $1,190 in the previous session, where it rallied 1.4 percent after weak data from the U.S. and China upped expectations of a 2016 Federal Reserve interest rate rise.
“The expectations of that Federal Reserve rate hike are going back and back. We did a poll in our base metals summit survey earlier this week and the majority of the audience are expecting a post December hike, those expectations are being pushed out,” head of commodities research at Macquarie, Colin Hamilton told CNBC.
Weakness in the dollar has also backed the move in gold. The greenback is currently trading close to seven-week lows against a basket of currencies, with the euro up 2.3 percent against the dollar in the last two weeks, at around $1.14.