The Bank of England is about to announce its interest rates decision, as Trading BoE Super Thursday is closely watched by the markets. Gold stays bearish.What to expect from the meeting?
Gold remains bearish ahead of BoE Super Thursday
The bearish trend leads currently, expecting a series of major economic decisions from the US, which are about to clarify the Fed’s interest rate position. Additionally, the Bank of England (BoE) meeting expectations on Thursday are keeping gold at the downside, as investors wait for the interest rate and monetary policy decision.
Following on this, the gold is currently trading -0.16% lower at $1320.8, with recovery from session downs at $1318.52. As markets appear cautious in the anticipation of the BoE meeting, gold is trading in a narrow range in the period of the last few hours. The likelihood of BoE decision to trigger mass volatility across the Forex industry is high, therefore it would have a huge impact on the USD-sensitive gold.
Gold also eyes next week’s FOMC meeting
The anticipations regarding the possibility of US Federal Reserve rate hike at the next meeting have diminished. This put some additional pressure on the dollar, which makes gold cheaper when is in weak trend.
The analyst from Natixis, French corporate and investment bank, Bernard Dahdah, shared his expectations regarding the gold stance, stating:
“The big picture is the Fed rate hike, which is going to be the biggest factor for gold, so in the short-term markets will be looking at U.S. data. It’s all about the opportunity cost of holding gold. Higher interest rates make it more expensive to hold gold, which has zero yields.”
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