Trade fears the prospect of a Fed rate hike, the US dollar is making a comeback
On Tuesday (June 26th), the prospect of US interest rate increase dispelled the supportive effect of trade tensions. The price of gold fell to a low point this year. The continued rise of the US dollar has restrained the demand for gold. The price of gold fell to a six-month low and was briefly supported, but as the dollar was sought after because of the weakening of the safe haven currency, this support quickly disappeared.
Bank of England Monetary Policy Committee member Haskell said that if the Bank of England raised interest rates too quickly, there will be risks, which to some extent weighed on the market's expectations of the Bank of England raising interest rates in August, resulting in a short-term diving sterling.
The trade war between Europe and the United States has intensified. President Trump of the United States stated that it is about to complete the study on tariffs imposed on EU vehicles. The EU has long used the US through trade barriers and tariffs; in the end, all this will end and it will not take a long time.