Gold Gains as Official Sees BOE Stimulus, Dollar Sags Before Fed
- Bank of England’s Weale said Brexit has rattled U.K. economy
- Fed policy makers gather for two-day meeting in Washington
Bank of England Hints Back Stimulus Expectations
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Spot gold headed for the first gain in three sessions on the outlook for interest rates to stay low as U.S. policy makers gathered for a two-day meeting and a Bank of England official indicated he favors immediate economic stimulus.
The BOE’s Martin Weale told the Financial Times that the U.K.’s vote to leave the European Union has rattled the economy more than he expected. U.S. Federal Reserve officials meet Tuesday and Wednesday, with traders putting only 10 percent odds of a rate increase this month. Gold also rose as a drop in the dollar curbed demand for the metal as an alternative asset.