20 June Economic News
The price of gold remained stagnant due to stabilisation of the US Dollar and weakened GBP in anticipation of forthcoming actions by the Bank of England. Despite increasing yields on government bonds, gold’s value slightly decreased. With the People’s Bank of China (PBOC) having adjusted their policy, focus has turned towards the Bank of England following the release of UK CPI data. During this busy week for financial markets, it is important not to overlook the potential impact of the US Dollar on XAU/USD. The forecast for AUD/USD indicates a decline following lacklustre decisions made by the Reserve Bank of Australia (RBA) and adjustments to Chinese rates. The previous RBA decision was uncertain, suggesting a possible halt in the upcoming July meeting. Data from the United States and speeches by the Federal Reserve later in the day will be scrutinised closely. A potential golden cross may be observed in the near future, while Asian markets are expected to open mixed as US equity futures remain cautious. European indices displayed lacklustre performance with bond yields moving higher. The Bank of England’s interest rate decision could lead to a rise in UK 10-year government bond yields to an eight-month high. While a meeting between US Secretary of State Antony Blinken and Chinese President Xi Jinping may be!
