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Metals Stocks: Gold lower as dollar bounces on hawkish Fed expectations

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The near-term fate of gold and silver lies with the Fed’s late-week Jackson Hole gathering.

Gold prices deepened recent losses on Monday as the dollar gained amid Federal Reserve interest-rate speculation.

Fed members converge on Jackson Hole, Wyo., near the end of the week for an annual policy retreat. ChairwomanJanet Yellen will headline the gathering with a speech Friday that investors will parse for clues on the near-term fate of interest rates. The debate over the odds, however slim, for a typically gold-negative rate hike yet this year continue to intensify in the lead-up to the market-sensitive event.

“Even though the Fed chief could spend most of her time discussing the implications of a low natural rate of interest and the longer-term future of monetary policy, any comments she makes with regards to the near-term rate path are likely to determine the dollar’s short-term direction,” said Charalambos Pissouros, senior analyst with IronFX Global.

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