All eyes in the gold market will be on meetings of the Federal Open Market Committee and other central banks this week, as well as the monthly U.S. jobs report on Friday, says Commerzbank.
Fed rate hikes or hawkish commentary, as well as strong jobs data, tend to undercut gold, and vice-versa. However, rate hikes in other nations could help gold by hurting the U.S. dollar.
“Market participants are likely to be focusing on the Fed meeting this week, though we do not expect a rate hike this time. This is likely to happen at the next meeting in September,” Commerzbank says.
“The meetings of the Bank of Japan (tomorrow) and of the Bank of England (Thursday) could also be of interest. What is more, the U.S. labor market report on Friday will be relevant to the gold price.”
Source: Kitco News