Friday Is a Big Day for Gold And Investors Better Be Prepared

(November 4, 2015 - by Hebba Investments)

Summary

Gold has been underperforming since the hawkish October Fed meeting.

The market currently expects the Federal Reserve to raise rates in December and Fed Governors have been pushing this view.

This Friday’s employment report will be a key data item to determine whether the Fed will raise rates in December.

Gold investors need to be patient as we expect all but the ugliest of jobs reports to increase rate hike expectations.

Gold has been under significant pressure since the most recent October FOMC statement.

As investors can see, the SPDR Gold Shares ETF (NYSEARCA:GLD) has been down over 5% since the hawkish Fed statement as a result of the belief that Ms. Yellen and the Federal Reserve will raise interest rates when they conclude their next meeting in December.