Although UK unemployment is fast approaching the BoE's 7.0% threshold deemed a reference for considering raising interest rates, the central bank's knockouts remain firmly within the boundaries of maintaining asset purchases. With inflation finally reaching the 2.0% target and sterling's effective trade index at 6-year highs, the BoE can safely make the case for ongoing asset purchases in order to further cap gilt yields and further stimulate growth and employment.
For tradable insights in FX & gold, visit ww.ashraflaidi.com/Premium
It's time to revisit the weekly gold chart and its similarity with the horror year of 2013, which included a 25% collapse in the Apr-Jun period. This time last year, I published several videos on why gold's decline to 1690s (in summer 2021) would be reversed, rather than repeat the collapse of summer 2012. The arguments were made here and here . But now that we've held the lows of March and Aug 2021, is the signal flashing an unequivocal green light for the rest of the year? Or, will gold bulls sustain fresh blows as inflation comes back to bite in autumn?