The Bank of England are set to raise UK interest rates for the 12th successive meeting – signalling to the market that more gains ahead for the British Pound?
Due to the Fed’s stance to not provide a narrative on the future outlook of interest rate policy at this moment, what Gold buyers will be hoping for is data showing inflationary pressures are cooling off for the United States economy significantly.
Traders should not allow debt ceiling headlines to disguise what is really driving financial market sentiment. The main event for the week in terms of economic data releases will be Wednesday’s U.S. inflation report.
If the selling continues and focus is not diverted somewhere else, questions will soon be asked regarding whether more regional banks will fall.
From the technical outlook side of the charts Gold is clearly bullish and buyers found a fresh round of inspiration after punching through $2000 at the beginning of the week. The precious metal should be a central function of an investor portfolio and for good reason.
The Federal Reserve has raised US interest rates over the last year at the fastest pace seen in a generation, but this path is expected to conclude today
Gold buyers have repeatedly threatened to open the doors of $2000 and finally managed to do so on Monday.
There are a couple of explanations as to why the USD can afford to ignore the US GDP slowdown – for now. Despite the data announcement on headline achieving anything but limiting prolonged concerns around a recession.
The most well-known Cryptocurrency touched weekly highs just below $30,000 in response to uncertainty in the banking sector resurfacing. Fears regarding what impact this could have on economic momentum has encouraged a sell-off in other risk assets, such as Oil.
Time has always shown that previous expectations of a USD collapse in international finance has been premature. This time is unlikely to be different.
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