From Kris Sayce – Port Phillip Insider (Australia) –
What a night for gold.
The price fell below US$1,300 an ounce for the first time since June this year.
It was the biggest single-session fall since 2013.
What’s up with gold?
An interest rate rise is coming…that’s what the experts say.
According to Bloomberg:
‘Fed Bank of Richmond President Jeffrey Lacker urged the central bank to raise rates to head off a likely pickup in inflation that wold force bigger increases later. On Monday, Fed Bank of Cleveland President Loretta Mester said she expects the case for a hike to remain “compelling” at the next review in November. The dollar headed for the biggest gain in two weeks against a basket of currencies, curbing the appeal of gold as an alternative asset.’
The market has now factored in a 21.4% chance of a rate rise at the Fed’s November meeting. If the Fed doesn’t raise rates then, there is a 61.2% chance of an increase at the December meeting.
Is either of those outcomes likely? We’ll give you our take below. First…