By Rajalakshmi Nirmal
Gold prices ended flat last week. From a high of $1,352.7/ounce on Wednesday, gold prices dropped to $1,327.8/ounce by Friday following comments from a Federal Reserve Official that the central bank is on course to do the second rate hike soon.
The Fed funds futures on Friday showed that the market sees a 30 per cent probability of a rate hike in September (over half the market, however, still sees the next rate hike coming only in December).
SPDR Gold Trust, the largest gold ETF in the world, saw holdings decline from 952 tonnes on Tuesday to 939.94 tonnes on Friday.
Prices of other precious metals, including platinum ($1,062.4/ounce) were lower by 0.14 per cent and silver ($19.05/ounce) down 2.05 per cent, ended in the red.
Cues to watch
There are a few critical data releases in the US in the later part of this week. On Thursday is the August month’s retail sales data. In July, retail sales (excluding revenue from sales of automobiles) were down 0.3 per cent. So, if August data too disappoints, showing weak consumer spending, it may turn negative for the already fragile dollar.