Gold under $1,300 for the First Time in 15 Months

05.10.2016 • Gold and Natural Resources

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…

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