With reference to Charlie Aitken’s article Bullish on Gold 7 July. I read another article which stated the probability of the US increasing interest rates in July, Sept and Nov has increased due to the non-farm payroll report in the United States. If this is the case and rates do increase what impact do you think this will have on the present gold bull market?
A: Thanks for the question.
You will note that on Friday, the gold price stabilized and last night (Monday), it pulled back about US 10 dollars.
If the market starts to think that the US will increase interest rates, then the price of gold will fall. However, I don’t think there is any expectation of an increase in July or Sept, with most of the market also thinking that a December increase is unlikely.
