Gold prices hit seven week high with United States dollars at near 3-week low

The interest rate expectations reflected in the Fed Fund Futures have further declined in response and the USA dollar has come under pressure, which is lending tailwind to gold. The odds of a rate liftoff in December are 35 percent while the chances for a move in March are 59 percent, futures data show. Carsten Menke also said that in order to see a reversal from the investment side, they would like the Fed to loosen up on the issue rather than tightening. Recall that Simpson was found not guilty in the murder of his ex-wife and another man despite seemingly overwhelming evidence that Simpson did, indeed, carry out the crimes.

Fed Governor Lael Brainard on Monday said the Fed should hold off on rate hikes until it is clear that trouble in China and other int.

Another governor at the Federal Reserve has said that interest rates should not rise this year, as the timing is not right for the economy to support the decision. The metal had climbed to $1,169 on Monday, its highest since July 7. Another $20 billion in six-month bills was auctioned at a discount rate of 0.080 percent, up from 0.065 percent last week.

Panelists continue to expect the strong US dollar and the economic slowdown in China to weigh on the USA economy, while lower crude oil prices and monetary policy easing in Japan and Europe are expected to help.

Fed policy divisions were exposed Tuesday as Governor Daniel Tarullo argued interest rates should stay on hold while documents showed most regional Fed directors sought higher borrowing costs.

“I worry about or take seriously the risk associated with that misalignment when I think it is seriously out of whack and we are clearly on a policy track that the market seems not to be reflecting at all”, he said. Although the U.S. unemployment rate stands at 5.1 percent and prospects for improvement look good, he said the unemployment figure does not fully capture current labor market conditions in the United States of America as the labor force participation rate remains low, while there are also many Americans who want to work full-time but only manage to obtain part-time jobs.

Concerns about slowing growth in China, the world’s second largest economy, has roiled financial markets in the past two months, causing the central bank to delay raising its benchmark interest rates which have been at record lows since 2008.