Gold price has risen to $1,960 per ounce, nearing its highest level in a month amidst a general weakening of the dollar, as slowing inflation in the US has spurred hopes that the Federal Reserve is close to ending the current cycle of monetary policy tightening.
This is reported by Trading Economics.
"Still, the US central bank is widely expected to raise interest rates by 25 basis points this month, while traders scaled back bets of further rate increases this year. Investors now await more US data and corporate earnings reports from major US firms this week for more clues on the economy," writes the publication.
According to analysts' expectations, the European Central Bank and the Bank of England will continue to tighten monetary policy in the coming months to curb inflation.
On the other hand, data showed that China's economy grew by 6.3% in the second quarter, which is lower than the 7.3% analysts expected, sparking hopes that the government will release more stimuli to support growth.
Background. Mind previously reported that ex-Fed chief Bill Dudley predicted that the July rate hike could be the last one for the foreseeable future.