Gold Standstill – Top 3 Things to Watch This Week

During the previous week, the yellow metal traded sideways despite the failure of G7 meeting. Earlier today, gold was slightly bullish over boosted safe haven appeal as investors are uncertain about the upcoming summit between North Korea and the U.S. Watch out for these three things before trading gold this week…

USD – Inflation Rate

The inflation rate is coming out just a day before FOMC meeting minutes. CPI (consumer price index) is expected to be remain steady at 0.2%,  along with Core CPI which is expected to rise by 0.1%.

Hawkish Sentiment – Fellas, the rise in inflation will surely boost the interest rate hike sentiment. As a result, the dollar can remain bullish and we can expect bearishness in the bullion market.

Dovish Sentiment – Likewise, a drop in the inflation could influence the Fed to set a more cautious tone, making the dollar weaker and gold stronger.

U.S. – North Korea Summit

Trump and North Korean leader Kim Jong Un will have an unprecedented meeting on Tuesday in Singapore, perhaps setting the basis for ending a nuclear stand-off between the old opponents. Gold prices are moving in a tight range ahead of the summit which is going to be held on June 12. Things are not going to be easy on both sides, but the lift in economic sanctions on North Korea can drive bearishness in gold.

Fed Monetary Policy Decision

Besides the U.S. – North Korea summit, investors are eyeing the U.S. FOMC meeting. The Fed holds a two-day meeting starting tomorrow on June 12 but the rate decision will be released on June 13. Fed is widely expected to hike interest rates for the second time this year. Most probably, the hike is likely to be 25 base points from 1.75% to 2%.

But the real focus is on if the central bank will indicate increasing rates a total of four times in 2018. So, good luck and trade with extra care this week!

ABOUT THE AUTHOR See More

Arslan Butt

Index & Commodity Analyst

Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.

Related Articles

BlackRock: China might dump U.S. Treasuries for Bitcoin, Gold

19 hours ago

Save

Gold Price Weekly Forecast: Will XAU/USD Break $3,370 as US Jobs, GDP Loom?

2 days ago

Save

AUD/USD Rises on Tariff Talks—Triangle Squeeze Looms

3 days ago

Save

Comments

0 0 votes

Article Rating

Subscribe

Login

Notify of

new follow-up commentsnew replies to my comments

Please login to comment

0 Comments

Oldest

Newest Most Voted

Inline Feedbacks

View all comments