Recap of latest FOMC meeting minutes
The minutes of the Federal Reserve’s July policy meeting were released last Wednesday and during that meeting, everyone agreed that a 75bps rate hike was indeed appropriate. Although not much has been emphasized that interest rate increase will be as aggressive in September. In this regard, market is pricing in a 60% possibility of 50bps rate hike in September.
Participants in the meeting highlighted that the federal funds rate was roughly in the “neutral” range, or between 2.25% and 2.50%, which neither supports nor restrains activity. A restricted posture according to some officials, will probably be justified, portending future rate increases.
Jackson Hole Symposium takes center stage
On August 25th to 27th, the United States Jackson Hole Symposium will take place. The highly anticipated address by the Fed chair at the annual conference will give more insight into how high US borrowing prices may rise in the coming months and how long they will stay there in their struggle against heightened price pressures.
US Q2 GDP figures, what is next for gold?
The US Q2 GDP third estimate will be released this Thursday and gold investors are advised to remain vigilant about data release as it would give more idea about the health of the US economy. If the US GDP estimates come in below expectations, then it may create buying interest in gold due to a profit-booking trigger in the US dollar.