Holding Lower For The Week, All Eyes On The Fed

Gold continued to trend lower this week, given the various stimulus measures announced out of China and last nights better than expected US GDP.

• Touching a low of $2,355.9 in Asian trading, prices appeared to stabilize at these levels as hopes of a near term rate cut from the FED appeared to dissipate. We were last near $2372.5.
• Despite the softer week, GOLD has enjoyed a strong year with prices up 13% year to date. The outlook for GOLD in the near term is hitched firmly to that of the FED.
• Market’s have priced in a September cut and earlier in the week a column from a Bloomberg columnist and former FED member Bill Dudley brought the FED’s
• upcoming meeting next week.
• The stronger than expected GDP has likely meant the next FED meeting may no longer be ‘live’, however tonight the Personal Consumption Expenditure’s index (a measure preferred by the FED as an underlying measure on inflation) now becomes a significant data release.