tangent
The price of silver is also down slightly on Monday after falling further late last week. Silver futures are priced about $66 per ounce as of shortly after 10 a.m. EDT on Monday, down about 1%. The metal previously dropped on Friday after Warsh’s speech, falling from its prior level of about $71.
Read more Iran’s President Offers To ‘Reciprocate’ If U.S. Returns To June Interim Peace Deal
Why Was Gold Rising In August?
Before last week’s decline, gold had been on a significant upswing throughout August, ending what had been a mostly stagnant summer. Earlier this month, the Treasury Department announced it would ramp up buybacks of long-dated government debt, a move analysts credited with boosting gold’s price. Last week, gold rose to a 15-week high, which analysts also attributed to a weakening U.S. dollar.
Will The Federal Reserve Raise Interest Rates This Year?
Expectations that the Federal Reserve will raise interest rates have grown since Warsh’s speech. CME Group’s FedWatch tool says there is a 63.9% chance of a rate hike at the Fed’s September meeting, whereas before Warsh’s speech, the odds of a rate hike in September were about 36%. The odds of a rate hike by the Fed’s October or December meeting are even higher, at 72.9% and 87.7%, respectively.
what to watch for
Some important economic indicators scheduled for release this week could sway the price of gold and silver. The ADP employment report is due out Wednesday, while the Bureau of Labor Statistics’ monthly jobs report is scheduled for Friday.
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key background
Gold and silver prices have come down from the historic highs they reached earlier this year, which capped a months-long rally. The metals were buoyed by factors including international tensions, interest rate cuts, demand for metals from technological industries and President Donald Trump’s tariffs. At their peaks in January, gold’s price surged to $5,600 while silver was priced at $121. The metals crashed in late January after Trump named Warsh as his pick to lead the Fed, as analysts considered him hawkish on monetary policy. Metals prices have generally declined throughout the Iran war.
further reading
Fed Chair Kevin Warsh Says Inflation Still Too High In First Jackson Hole Speech (Forbes)
Read more See Venus Blaze, Jupiter Vanish And A ‘Harvest Moon’ Rise: September’s Night Sky
Gold drops as Fed’s Warsh comments lift rate hike bets (CNBC)