Gold Dips as Greenback Strengthens | Boris Johnson Wins UK Conservative Party Leadership
Published July 23, 2019
Gold prices fell in early Asian trading this morning as the greenback rose to a one-week high on expectations of a smaller interest rate cut by the US Federal Reserve at the end of this month. Spot gold was down 0.5% to a low of $1,417.11 per ounce. The US Federal Reserve is widely expected to lower its interest rate target range by 25 basis points at a meeting ending July 31.
Boris Johnson has been announced as the new leader of Britain’s Conservative Party. Prime Minister Theresa May is due to step down tomorrow, with Boris Johnson to take up the position of prime minister. Johnson will assume leadership with no clear parliamentary majority and a divided nation regarding Brexit.
In US economic data, the US Housing Price Index, Existing Home Sales and Richmond Fed Manufacturing Index are ready for release at 10:00am EST. The Richmond Fed Manufacturing Index is expected to improve from 3 to 5. While Existing Home Sales aren’t expected to change from 5.34 million, the Housing Price Index might soften to 0.3%.
President Trump announced a bipartisan agreement to suspend the debt ceiling and boost spending for the next two years, averting the risk of a payments default in September. The House has to approve the deal this week before members leave for a six-week recess.