“European Central Bank policy maker Francois Villeroy de Galhau signaled that he expects bond purchases to end this year and an interest-rate hike could follow in 2019, putting him in the camp of officials who see the current euro-area slowdown as temporary. . . .The ECB could say a rate increase will follow the halting of net asset purchases by ‘at least some quarters, but not years’ he said on Monday in a Bloomberg TV interview…”
MK note: Most of the dollar’s strength of late has come the result of easy monetary policies in Europe and Japan – policies that weaken their respective currencies against the dollar. If Europe is about to step on the breaks it will undermine that narrative, which might in a ciruitous way make it way to the gold market as a positive development.