Gold may well benefit if the Federal Reserve does not hike interest rates this week but then could be hurt if the monthly jobs report is strong, says Commerzbank.
A number of news events could impact markets this week, including another U.K. Parliament vote on the Brexit deal with the European Union, the bank says.
“As the current version presented by Prime Minister Theresa May hardly differs from the previous one, it is highly likely that the deal will be rejected again,” Commerzbank says.
“We believe that the U.S. Fed will not raise interest rates any further on Wednesday because economic concerns have increased. Though this should have a positive impact on gold, the publication of a robust labor market report in the U.S. could have a dampening effect again on Friday.”