XAUUSD H2 | Market View

- Gold is beginning the new quarter with a steep loss. This is coming off its worst quarter since early last year amidst aggressive monetary policy from several major central banks. The Fed is expected to raise its benchmark interest rate by 75 basis points in late July. This will follow an expected 25 basis point rate hike by the European Central Bank (ECB). A new poll also shows the Reserve Bank of Australia is expected to raise its cash rate by 50 basis points next month.

Since gold doesn’t pay interest or a dividend, it tends to weaken when interest rates rise as investors chase the higher-yielding asset.

Trade closed: stop reached