June Rate Hike Off The Table, July Uncertain, But September A Possibility

New York (Jun 3)  Gold price are soaring on the back of lower bond yields and a weaker U.S. dollar following a massively disappointing May employment report, shifting expectations for rate hikes later in the summer.

Friday’s nonfarm payrolls data showed that 38,000 jobs were created last month, well below expectations for gains of 160,000.

 The CME FedWatch tool has shown a dramatic shift in expectations with 30-day Fed fund futures now pricing in less than a 4% chance of a rate hike in June. Heading into the report, markets were pricing in about a 21% chance of a hike.

July expectations have also shifted with markets pricing in a 34.6% chance of a rate hike, down from almost 50% a day earlier.

Source: KitcoNews