Week Ahead Commodity Report: gold Price Forecast: 16 - 20 December 2019 (Video)
|The biggest market-moving events last week included the U.S-China phase one trade deal, December’s FOMC meeting and the U.K general elections.
On Thursday, President Donald Trump took to Twitter, announcing that the U.S and Beijing had reached a phase one trade deal and further tariffs against China, scheduled to be rolled out on December 15 – would be cancelled.
In Britain, Prime Minister Boris Johnson won a majority – securing the biggest win for the Conservatives Party since Margaret Thatcher in 1987. This now paves the way for the UK government to enact their Brexit plan and leave the European Union by the end of the January. Traders still don’t know the impact of leaving the European Union will have on the economy, which could lead to a new era of uncertainty.
Earlier in the week, the U.S Federal Reserve signalled its plan to maintain low U.S interest rates – keeping real interest rates close to negative territory throughout 2020. Low interest rates put pressure on the dollar and bond yields, whilst significantly boosting the appeal of assets such as precious metals.
Looking ahead to this week, some of the other major trading events that traders will not want to miss out on include; BoE Interest Rate Decision, Eurozone CPI and U.S Gross Domestic Product (GDP) Data.
Where are commodity prices heading next? Watch Phil Carr at The Gold & Silver Club review Gold, Silver and Crude Oil with the latest price forecast and predictions.
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