Gold under pressure this afternoon as the price of the dollar strengthens. Dollar index on the highs for the session at $ 96.13 as more and more traders have expressed the belief that a stronger dollar is in the cards, which in turn puts pressure on the gold price.
Non-farm payroll numbers are to be released Friday and the if the numbers are favorable it will give the hawks on the Fed committee more ammo for a rate hike in September.
Most Wall Street gold traders I speak with are still enjoying the summer sun and the ones who are in the office are very comfortable carrying a short position as the bids dry up below.
CME Fed watch tool predicting a 24 pct. chance of a rate hike at the September Fed meeting and I expect the odds will increase as more favorable economic data is released.
Good rest of your day.
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