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    Gold inter-markets: upside intact around 2-year tops Pablo Piovano

    The troy ounce of the precious metal keeps the upper end of the recent range so far, trading below 2-year highs recorded post-‘Brexit’ vote just above the $1,360 level.Expectations of looser monetary conditions in the main economies of the world following the UK decision to leave the European Union are almost exclusively bolstering the demand for bullion. It is worth mentioning the earlier today Governor M.Carney has announced the ‘Old Lady’ cut the buffer rate to 0.0% from 0.5%, while he stressed the BoE will do whatever is necessary to support the economy.By the same token, market participants have practically ruled out a rate hike by the Fed over the summer and at least until the December meeting, with Fed Fund futures now signalling the probability of a rate hike at just above 22% when tracked by the CME Group’s FedWatch tool.Sustaining further the prevailing risk aversion environment, yield of the US 30-year benchmark is trading in the red along with the rest of the curve, while volatility gauged by VIX is just off daily highs.Gold seems to be poised for another test of recent peaks and maybe higher if the risk-off scenario continues to prevail, a condition that hinges almost exclusive on global adjustments after the recent ‘Brexit’ vote.

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