Gold slips into negative territory after hitting one-month high

14 June 2016, 19:27
Sherif Hasan

Retail sales weren't strong enough to trigger Fed fears

Gold is slightly lower after four days of gains and six day in the past seven.

The climb began after a weak non-farm payrolls report pushed back expectations for a Fed rate hike.

A spike earlier in US trading took out the May 16 and rose to the best level since May 6. The May 4 high of $1303 was also the best level since Jan 2015.

However, the gains have faded and gold is now down $1.20 to $1282 on the session.

What I think we're seeing is a bit of profit taking ahead of the Fed decision. Buying on the non-farm payrolls headlines was a great trade but there is a significant risk that the FOMC brushes off the soft jobs report and outlines a statement that keeps a July hike on the table (barring a Brexit).

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