sunshineprofits.com / ARKADIUSZ SIEROŃ / JULY 18, 2017
This month, the World Gold Council (WGC) released a new edition of Gold Investor. What can we learn from the report?
The summer issue of the WGC’s Gold Investor contains a few interesting articles. The first one which we would like to cover is an interview with John Reade, the new WGC’s Chief Market Strategist and Head of Research. He believes that aside from the gold-market specific positioning and flow data the most important factors in the gold market are the moves in the U.S. dollar, real interest rates and the market-derived probability of interest rate hikes by the Federal Reserve.
“This probability, and specifically changes to this probability, appear to be having the greatest impact on gold at the moment, even more than moves in the US dollar. I suppose this is logical, as the US is in the midst of a hiking cycle after years of essentially zero interest rates. Typically, the probability of an interest rate hike increases to virtually 100% some time before it is announced and that rapid increase in probability sees gold under pressure.”
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