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British Bank cut interest rates again, Gold price continued to be under pressure

British Bank cut interest rates again

After the emergency interest rate meeting last night (20th), the Bank of England announced another interest rate cut of 0.15% and lowered the benchmark interest rate to 0.1%. At the same time, it also announced that it will expand the QE scale from 200 billion pounds to 645 billion pounds. The central bank statement pointed out that the impact of the new coronavirus epidemic may be considerable, but believes that this is only temporary and emphasizes the role of helping to meet the needs of British companies and families. The Bank of England's decisive introduction of easing, coupled with the Johnson government's alleged mishandling of the epidemic prevention issue, once dragged the pound's exchange rate down to 35 years.

 

Gold price continued to be under pressure

On Thursday, the US and European stock markets closed slightly higher as central banks issued more stimulus plans. However, due to liquidity demand, the market continued to accumulate dollars, pushing the dollar to continue to brush up to a three-year high, so it continued to suppress gold prices. A key factor in the loss of gold ’s hedging attractiveness is the downward pressure on the global economy. Weak inflation and low interest rates are the norm for a period of time in the future. As a tool to hedge inflation, gold lacks the necessity of holding for a short time, while liquidity Demand prompts investors to hold gold. Saxo Bank suggested that you can focus on the performance of gold mining stocks to find the inflection point of gold.

 




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