This article was first published on Orbex Forex Trading Blog.
This content is synced from the rightful owners. Copyright on text and images belong to the original source.
While momentum has contracted somewhat, gold has posted its eighth consecutive winning week, a streak not seen since 2006.
Gold Boosted By Fed Easing Expectations
The main driver for upside in gold this week was the release of the June FOMC meeting minutes.
In the June meeting, the Fed outlined the likely need for monetary easing in the near future. Since then, the market has increased bets on a July rate cut. Consequently, the minutes took on extra importance as traders sought further clarity on the likelihood of a rate cut this month.
FOMC Minutes Support Rate Cut
The minutes did, indeed, confirm the Fed’s bias towards easing. The minutes stated:
“Many judged additional monetary policy accommodation would be warranted in the near term should these recent developments prove to be sustained and continue to weigh on the economic outlook.”
Indeed, “Several” policymakers noted their preference for a rate cut in the coming months. They judged that it “could help cushion the ef...
To keep reading this article, please navigate to: Orbex Forex Trading Blog.