Gold prices dip to reveal bargains for the longer term
AUGUST has been a lacklustre month for gold prices. With September's Federal Open Market Committee meeting nearing, investors refocused their attentions on the likelihood of a US interest rate hike. Two consecutive months of strong non-farm payrolls data hinted at improving economic fundamentals. A gain of 271,000 and 275,000 jobs in June and July respectively both surpassed average monthly growth for the year.
Speculation of a rate hike in coming months was further stoked by a series of speeches by Federal Reserve officials. Fed members Stanley Fischer, William Dudley and John Williams took turns talking up interest rate expectations, each signalling in their own words that labour and inflation measures were close to targets.
Markets appeared apprehensive of the hawkish language at first, but finally came round when Janet Yellen backed the hawkish stance at the Jackson Hole symposium.
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Companies & Markets
Seatrium unit to fully redeem S$500 million worth of floating-rate bonds early
Yeo Guat Kwang, John Chen retiring from corporate boards
US: Wall St opens higher
Air China orders homegrown C919s in challenge to jet duopoly
HCA beats first-quarter profit estimates on higher patient admissions
F&B operator YKGI to exclusively operate Chicha San Chen in Macau for next eight years