The Daily Market Report: Gold Slips on Latest Hawkish FedSpeak

28-Sep (USAGOLD) — Gold fell back into the range on Monday, on the seemingly unending talk that a Fed rate hike could still happen this year. Some Fed members maintain that a rate hike before year-end would be appropriate, two-weeks after the central bank failed to make such a move at the September FOMC meeting.

The next big data release will occur on Friday with September jobs data. Nonfarm payrolls are expected to rise 200k, and the unemployment rate is projected to hold steady at 5.1%.

One would think that another sub-200 NFP print would kill rate hike talk for 2015 once and for all. However, the Fed seems inclined to hang the tightening prospect over markets for the foreseeable future, irregardless of the data.

The next opportunity to hike would be at the October FOMC meeting, but there is not a press conference scheduled. They could certainly call a press conference to explain any decision, but the more likely reality is they simply won’t tighten in October.

December seems unlikely as well. What kind of scrooge would raise interest rates — potentially triggering market turmoil — into the Christmas holiday?