Gold registered gains of 1.2 per cent gain for the quarter, helped mainly by a
dovish US Federal Reserve and concerns about the global economy.
The hawks at ECB are sounding more
dovish. Bundesbank President Weidmann said that there was 'much to suggest' that weakness in Germany's growth is persisting in 2019 and Bank of Japan (BoJ) Governor Haruhiko Kuroda said last week that the central bank might ease policy further if a strong yen hurts the economy.'
Tillerson has been one of the representative
dovish figures in the administration, and has often clashed with Trump over North Korea issues.
ING Bank economist Joey Cuyegkeng said the Bangko Sentral ng Pilipinas (BSP) continued to show its "greater tolerance" for a weaker peso and the recent move - though expected - to cut its reserve requirement ratio (RRR) for banks by one percentage point to 19 percent is further evidence of the BSP's
dovish bias.
However, the stimulus from easier monetary policy by a
dovish Fed may not last.
"Wrapped in
dovish language, theFederal Reserve has just embarked on what will be the loosest tightening in its history," said Mohamed El-Erian, chief economic advisor at Allianz in Newport Beach, California.
While the fundamentals continue to perform at a robust level,
dovish BoE inflation views will prevent any UK interest rate optimism from emerging again and also prevent the Sterling from experiencing a similar rally to what we encountered this time last year.
The
dovish US Fed minutes knocked the US Dollar, causing gold prices to bounce and equities to rise.
US stocks, bonds slip as Fed stops short of more
dovish expectations
"It is predictable that we are going to see a
dovish stance (from the Fed,) but if it turns out more
dovish than expected, the dollar could be sold further," Saito said.