26th August, 2016

A very quiet day in the markets all in all and we think Friday will be more of the same when Janet Yellen’s talk gets underway. We are told that the speech will start around 10 am, which should mean that by early afternoon US east coast time, markets could start reacting to her remarks. Of course, Yellen may not say much of anything, in which case the global waiting game would turn into a gigantic waste of time. However, if she hints at a higher probability of a September move, this week’s selloff in gold could intensify. On the other hand, if she comes across as more dovish, we could see a brief bounce in prices, although we suspect that any such move will be a rally in what still seems to be a down market given the technicals and the recent exodus in fund length.