HSBC: Apparent Fed Division Means Choppy Near-Term Gold Trade

Thursday September 1, 2016 09:02

Comments from U.S. Federal Reserve officials Wednesday reflect the apparent ongoing division of policymakers, which can mean choppy near-term trading in gold, says HSBC. “Boston Fed President Eric Rosengren argued that there is a danger of financial instability from keeping interest rates low for long,” HSBC says. “Chicago Federal Reserve Bank President Charles Evans said he is increasingly convinced that U.S. economic growth has slowed permanently. The conflicting nature of the comments argues for choppy but neutral gold trading near term.” Overall, gold has remained under pressure, with attention focused on Friday’s U.S. jobs report, HSBC says.