Money managers, who have cut their net length, are “mostly prepared” for a Fed hike, says HSBC. “This may explain gold not falling on the release of the ostensibly bearish minutes,” HSBC says. “It is possible that the gold market has largely factored in a rate rise. This leads us think gold is likely to trade sideways to slightly higher, at least in the near term.”
Probably just a coincidence.Let us be clear:
- The reason why gold’s been weak is that the dollar’s been strong
- The dollar got strong because of the US Jobs number
- The US macro improvement indicates that Janet will raise the base rate in December
- That move needed to be baked into gold.
- It’s now baked in.
- And that’s all.