PT Equityworld-The statement puts pressure on precious metals, because the Fed rate hike generally trigger the hunt for investments more profitable than gold, as the precious metal is an asset that does not charge interest. The investors believe the Fed will raise interest rates from 0.50 to 0.75 during the December FOMC meeting. According Fedwatch tool CME Group, the implied probability at this time to raise interest rates from 0.50 to 0.75 is at least 90 percent at a meeting in December and 91 percent for the February meeting.
Gold was put under further pressure when it reports on Thursday released by the US Labor Department showed the consumer price index increased 0.4 percent during October, this figure is in the top end of expectations. A report released by the US Census Department on Thursday also showed new home built (housing starts) is much stronger than expected.
“Housing starts” in October at the rate of 1.323 million units, and building permits at a rate of 1,229 units. Analysts noted that these figures provide a broad pressure on the precious metals, as this could mean an increase in expectations for US gross domestic product report this month. The precious metal was also dampened by the weekly jobless claims report the US Labor Department released on Thursday showed initial claims jatuh19.000 to the level of 235,000, which analysts noted very strong. All of these reports, combined with the testimony Yellen, making a rate hike at the FOMC meeting in December probable.
The investors will memantao Fed speeches this weekend for additional instructions, in addition to economic reports Thursday, some Federal Reserve officials scheduled to speak on Friday. Silver for December delivery fell 15.5 cents, or 0.92 percent, to close at 16.772 dollars per ounce. Platinum for January delivery dropped 1.4 dollars, or 0.15 percent, to close at 945.10 dollars per ounce.