Central banks will take the spotlight as the U.S. Federal Reserve, Bank of Japan, Bank of England and the Swiss National Bank will publish monetary policy decisions. The market anticipates no changes across the board, but is expecting some of the rhetoric to fill the void of monetary policy actions. The next few weeks will be full of economic events and with uncertain outcomes volatility is forecasted to rise.
Crude oil prices are struggling as global markets get fearful about the future causing safe haven buying in Treasuries and the U.S. dollar. The massive comeback in crude oil is put on hold as traders fear everything from a Brexit vote to the Fed as well as dire predictions about the economy from none other than George Soros and “Bond King” Bill Gross.
An abatement in the wave of speculative selling pressure is allowing strong demand for physical gold from Asian buyers to assert its influence over the price and there is a growing case to be positive over the prospects of the yellow metal.
Hedge-fund managers are making the biggest ever bet against gold as billionaire George Soros sold holdings last quarter and Goldman Sachs Group Inc. predicted more declines after the longest slump in four years.
First, the Aussie Central Bank cut interest rates, which has sparked Aussie dollar selling. Second, rumors of legendary trader George Soros taking a big short position in this currency also probably stoked some added selling as well.