financialsense.com / ADRIAN ASH / 08/30/2016
Gold bars traded in London’s wholesale market recovered from their fourth dip below $1320 per ounce in 4 days on Tuesday, returning from the UK’s summer Bank Holiday near 5-week lows as betting rose that the US Fed will raise its key interest rate at this month’s FOMC meeting despite an expected slowdown in US jobs creation.
Wall Street consensus says Friday’s official estimate of non-farm payrolls will show a rise of 180,000 for August, well down on July’s surprise 255,000 jump.
The Federal Reserve then meets to announce its policy on 21 September.
“Gold remains range-bound within a descending triangle over the past month,” said a note from traders at gold refiner and bar manufacturers MKS Pamp.
“With investors pricing in a greater likelihood of a Fed rate increase before year end, pressure is likely to continue to weigh. Next focus for traders will be on…Friday’s employment data to gain more insight.”