The gold price fell again on Friday marking its third consecutive day of losses on the back of comments from a US Fed board member that and interest rate hike may be coming this month.
In a speech on Friday, Boston Federal Reserve Bank President Eric Rosengren noted the US central bank "increases the chances of overheating the economy" if they continue to leave rates low.
"If we want to ensure that we remain at full employment, gradual tightening is likely to be appropriate," Rosengren also said
"A failure to continue on the path of gradual removal of accommodation could shorten, rather than lengthen, the duration of this recovery." He added.
Rosengrens comments have fueled speculation that the Fed may choose to overlook recent disappointing data over the past week, including nonfarm payrolls and ISM non-manufacturing reports which lead investors to believe that a rate hike was of the table.,
For over 2 months now the gold price has been stuck in a range between US$1,310 and US$1,380 and has been unable to make a significant break in either direction which according to some is because of a number of technical factors,.
"The problem with gold currently is that on the technical side we've now twice been around $1,375-US$1,380, so if it gets back towards there, people are just taking profits," ABN Amro analyst Georgette Boele said.
|By clicking "Continue" you will be redirected to the website operated by FIBO Group Holdings Limited, a company registered in Cyprus and regulated by CySEC. Click "Cancel" to remain on this page.|