The gold price is down for a fourth consecutive day today as the market awaits another speech by a Fed board member which may shed more light on whether there will be a rate hike in America next week.
Fed board member Lael Brainard is due to give a speech later today with volatility expected in the gold price following on from board member Denis Lockard’s speech on Friday.
“Brainard is among the few Federal Open Market Committee members that have not already expressed their view on the outlook for policy ahead of the September meeting” said Charalambos Pissouros, senior analyst with IronFX Global.
“As such, we believe that her speech has the potential to influence market expectations for a hike” in 2016” he added.
With only eight days to go until the Fed rate decision gold and other metals are likely to see more weakness as chances of a rate hike grow by the day,
"A pick-up in focus on the Fed speakers certainly means that every word will be closely analyzed. It is going to create a little bit of volatility going forward," said ANZ analyst Daniel Hynes.
"Expectations are increasing about a potential hike in rates this September. That alone will see investors reduce their long positions over the coming days." he added.
Today also has some added significance as it is the last day Fed officials can speak before they go into their quiet period.
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