The Gold price is under further pressure today after comments over the weekend by US Federal Reserve President Stanley Fischer that an interest rate hike from the central bank was a real possibility this year.

Higher rates would give a boost to the US dollar which usually pressures the gold price as the precious metal becomes more expensive for buyers with other currencies.

Mr Fischer noted that the US economy was moving forward and that he expected key indicators to pick up in the nearest future which should be enough to trigger a rate hike,

“We are close to our targets, looking ahead, I expect GDP growth to pick up in coming quarters, as investment recovers from a surprisingly weak patch and the drag from past dollar appreciation diminishes,” Mr Fischer noted

He also said that the stand out performer of the US economy had been the Jobs market which had made a remarkable recovery since the 2008 financial crisis,  

“The labour market continues to improve, employment has continued to increase, and the unemployment rate is currently close to most estimates of the natural rate”. Mr Fischer said

“I believe it is remarkable, and perhaps,an under appreciated achievement that the economy has returned to near full employment in a relatively short time after the great recession given the historical experience following a financial crisis”. he added.

The gold price is expected to come under further volatility this week ahead of a speech by Fed Chair Janet Yellen in Jackson Hole, Wyoming where she is expected to lay out a path for monetary policy.