 Hello, welcome to this week's CMC Markets Commodity Snapshot, this week we are focusing on gold. We've just had a more hawkish set of Federal Reserve Minutes which has implications for inflation and interest rates and we're also at a key level on the chart for gold namely the $1280, $1280 per ounce. Now there have been rising geopolitical tensions across the world, of course Iraq, the Gaza Strip, Ukraine, but that has acted to some extent to keep the price of the gold higher, but really what's been driving gold and what is likely to drive gold either to the upside or the downside of this 1,300 midpoint that we've been trading around is going to be interest rates and inflation particularly out of the US. Now what's been happening recently is that there's been a slight change in the dynamics whereas at some point inflation was rising in the US and the Federal Reserve were remaining quite dovish meaning they were not going to raise interest rates soon so inflation looked like it was going to get out of control and as such gold is an inflation hedge, you buy gold to protect yourself against rising inflation. For now inflation is still quite high in the US but it looks like the Fed are now looking to act against it as mentioned in their recent minutes looking at potentially raising rates if economic data continues to improve sooner than was otherwise expected in the market so in that sense inflation may be contained and as such you don't need gold as an inflation hedge and other markets that have a yield in a high yield environment are going to outperform gold which obviously doesn't earn you any interest. Now in reference to the price of gold let's have a quick look at the chart we have a daily candlestick chart here and you can see the broad range that we've been trading in since the end of last year. Now this 1280 level is approximately the middle of this trading range and it's actually depending on how you count it since March this 1280 level has been tested eight times so it's becoming more and more significant and should we see a break below there it does substantially increase the odds that we could see a move back down to the base of this trading range around $1,200 pounds. Okay that's it for this week's CMT markets commodity snapshot of course we were looking at gold always keep an eye on for these geopolitics when they when they escalate the gold price will likely react but over the slightly longer haul let's watch what's happening with the Federal Reserve even this week we have a Jackson Hole meeting which Janet Yellen the Fed chair will be talking so any comments which infer a rate hike against contained inflation could be dampening on the price of gold.