XAU/USD in Focus as BoE Rate Hikes Loom on Strong UK GDP
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UK GDP grew 0.4% in July, defying forecasts of stagnation, and City economists now expect the Bank of England to hike rates up to four times over the next year. Such tightening expectations shift global rate differentials, a key driver for gold pricing against the dollar.
Andrew Bailey is tipped to lead a November hike, and any resulting GBP strength could pressure the broader dollar index, indirectly supporting XAU/USD as a non-yielding asset priced in dollar terms.
As central banks diverge on tightening paths amid energy-driven inflation risks, gold traders will likely watch how BoE policy interacts with Fed expectations to gauge medium-term direction for gold.