Congratulations! Gold has just opened a new era... or, rather, reopened...
Gold surges in early Asia trade
On Monday, gold soared in early Asia, as market participants see a week of political risk events, including the UK’s move to formally start its break from the EU.
Prime Minister Theresa May is going to set out how her government intends to restore sovereignty over the UK’s laws on Thursday, releasing a detailed paper on ending the supremacy of European lawmakers.
In New York, April delivery gold futures added 0.73%, trading at $1,252.90.
In the week ahead, market participants will be continuing to watch political developments in America because Trump’s promised tax reforms attract attention. Expectations that the Trump administration would stimulate growth and inflation via fiscal stimulus pushed the greenback to 14-year peaks in the weeks after the election.
However, the US dollar has dropped in recent week as it turned apparent that the White House would face difficulty in delivering on its legislative agenda.
Follow Canadian core retail sales on September 18 at 15:30 MT time!
The US dollar gained after the Fed’s report, while riskier assets dropped. Let’s have a closer look.
Keep an eye on the UK monetary policy statement on September 17 at 14:00 MT time!