On Thursday, June 20, gold added about $50 or 3.6%. The asset has updated the annual maximum at around $1394/oz, the price of the metal has not been so high since September 2013. At the moment, gold is consolidating in the $1378-1386 zone and still looks quite bullish. Getting over the psychological level of $1400 will be an extremely important local task for buyers. If they do it, the asset may grow up to $1500 and above.
The high was updated due to the market expectations of easing the Fed policy this year. The American Central Bank may cut the rate at the next meeting, and some analysts are even talking not about the date of this meeting, but about the final amount of reduction. In one month, we will know whether the rate will be cut by 25 or 50 basis points.
Nevertheless, the demand for gold may decline if Washington and Beijing reach a truce in their trade war. Next meeting between the leaders of the superpowers will be held at the G20 summit in Osaka at the end of next week. Donald Trump has recently launched his 2020 re-election campaign for and is very likely to take new steps in the geopolitical arena to increase his ratings.