Gold finally broke out of its recent torpor as hawkish hints in minutes from the latest Federal Reserve meeting sent the price tumbling by over 1%. According to the minutes a growing number of the Open Committee’s members see an early rate rise as ‘appropriate’ if the targets for employment and inflation are hit quicker than expected. It was a clear change of tone from previous meetings and unsettled Fed watchers who had been predicting a benign outcome ahead of the Jackson Hole central bank symposium. It sent the dollar shooting higher again and is at its highest against the euro for nearly a year. Gold tends to move in the opposite direct into the dollar and is now close to a two-month low. No even more in flows in to exchange traded flows (ETFs) provided much support, with this overshadowed by another sharp drop in the amount of gold flowing out of Switzerland, a proxy for Asian demand, falling by 18% in July. Gold though was not the worst performer, that title recently has fallen to platinum which is enduring its worst run in decades. The price fell again overnight, with the spot price heading for a tenth straight day of declines at US$1,416, down US$7. Silver was also under pressure at US$19.40.

Source