Gold soars ahead of Bank of England rate decision
On Thursday, gold slumped during European trade because market participants looked ahead to the Bank of England’s monetary policy verdict later in the trading session.
In New York, August delivery gold futures tumbled 0.82%, trading at $1,332.55 per troy ounce.
Yesterday, gold gained 0.62%, as traders considered the possibility of more monetary easing by global major banks.
Expectations for more easing strengthened Mark Carney, BoE Governor suggested interest rate cuts as well as extra stimulus would most likely be required over the summer just to compensate the hit to the economy from the UK’s decision to abandon the European Union.
At the same time, in Japan, Shinzo Abe, Prime Minister flagged a new fiscal stimulus package after the ruling coalition gained a landslide victory during an election for parliament's Upper House.
The coalition’s firmer grip simply means that policy makers can easily approve a promising fiscal stimulus package this autumn to back up the national economy.