Gold Trading Cautiously After Boris Johnson’s Victory, Markets Await ECB Meeting Next
Arslan Butt • 1 min read
A stronger dollar is pushing GOLD prices lower on Wednesday even as markets lie in wait for next week’s Fed meeting to see if the US central bank will cut interest rates. During the previous day, gold touched a five-week high after the US government agreed to raise its debt ceiling.
However, gold prices continue to remain supported over ongoing trade tensions around the world. Boris Johnson’s victory and its potential implications for Brexit and the UK economy are also lending support to gold. At the time of writing, gold is trading a little above $1,420.
It’s going to be a volatile few days for gold over the upcoming meeting of the Federal Reserve on July 30-31 when the Fed is widely expected to cut interest rates amid weak economic data and low inflation in the US. Markets also remain tense about Boris Johnson’s interest in pulling Britain out of the EU without a deal.
Gold will also trade cautiously ahead of Thursday’s ECB meeting, as markets look towards the central bank’s forward guidance for clues on upcoming monetary policy decisions in the Eurozone.