Gold heads south ahead of BoE decision

On Thursday, gold prices added to overnight losses during European trade because the greenback surged with traders focused on the BoE’s policy announcement later in the session.

In New York, December delivery gold futures decreased 0.65%, trading at $1,355.90 per troy ounce. Yesterday, gold lost up to 0.58% because the major American currency soared following the issue of better than expected American private payrolls data.

The BOE is going to issue its rate decision, minutes of its Monetary Policy Committee gathering and its quarterly inflation report soon. Additionally, Mark Carney, BoE Governor Mark Carney is on the verge of addressing the financial press today too.

A Reuters survey of financial experts published the previous week forecast the British central bank would drop its benchmark interest rate from 0.5% to 0.25%, but added it wouldn’t get back to its massive bond-buying program.

Hopes for more easing mounted after Mark Carney suggested interest rate cuts as well as extra stimulus will probably be required over the summer to compensate the hit to the economy from the UK’s decision to leave the European Union.

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