- The price of gold continues to retreat
- Gold was down about $12 today; it closed around $1310
- The dollar index up again as more and more people begin to contemplate the possibility of a rate hike in either September or December
- Or maybe even both, because the odds of a rate hike, either in September or December have now increased to about even money
- If you go back to June, the odds were practically zero
- What has changed in the last couple of months?
- The only thing that has really happened is that you’ve had various Fed officials going out of their way to mention that a rate hike is still possible
- Why would they do that?
- Obviously, a rate hike is possible
- Usually they are asked the question and they mention the possibility
- If the Fed had no intention of raising interest rates, I doubt they would admit it at this juncture
- They want people to believe that a rate hike is possible because if you admit that it’s not possible,
- That opens a can of worms that the Fed isn’t interested in opening just yet
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