A growing belief that the peak of the Federal Reserve’s restrictive monetary policy may be near, in conjunction with the slowdown of the US dollar, saw gold close last week rebounding from the recent lows at $1,620 and return above $1,650.
It seems clear that investor attention on gold remains high and a moderate correction of the greenback was enough to trigger a rebound in bullion. The next few days will see markets keenly awaiting the outcome of the Fed meeting and the release of subsequent US macroeconomic data.
Moreover, markets are closely following the political events unfolding in the UK. After Boris Johnson announced he would not be bidding to make a return to leading the party, former chancellor Rishi Sunak is expected to become the new Prime Minister. The pound reacted positively and is currently traded above 1.13 against the US Dollar and above 1.15 against the eurozone currency, while the EUR/USD is being exchanged in the region of 0.985.
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