The Factors That Could Drive Gold Prices This Week
Gold prices are expected to remain volatile this week, as investors digest the latest economic data and central bank policy decisions. The US non-farm payrolls report on Friday will be a key event for gold prices, as it will provide an update on the state of the US labor market.
Other key events to watch this week include the European Central Bank (ECB) policy meeting on Thursday and the US Federal Reserve (Fed) meeting on Wednesday. The ECB is expected to raise interest rates for the first time in 11 years, while the Fed is expected to keep rates unchanged.
The price of gold is currently trading near the lower end of its recent trading range. A break below this level could trigger a sell-off, while a break above could lead to a rally. Therefore, could see gold revisit $1925.
1. US economic data: The US non-farm payrolls report, the ISM manufacturing PMI, and the ISM services PMI will be closely watched for any signs of economic weakness or strength.
2. Central bank policy decisions: The ECB and the Fed are both expected to make announcements on interest rates this week. Any hawkish or dovish surprises could have a significant impact on the price of gold.
3. Geopolitical developments: Any escalation in the Russia-Ukraine war or other geopolitical tensions could boost demand for gold as a safe haven asset.
Other key events to watch this week include the European Central Bank (ECB) policy meeting on Thursday and the US Federal Reserve (Fed) meeting on Wednesday. The ECB is expected to raise interest rates for the first time in 11 years, while the Fed is expected to keep rates unchanged.
The price of gold is currently trading near the lower end of its recent trading range. A break below this level could trigger a sell-off, while a break above could lead to a rally. Therefore, could see gold revisit $1925.
1. US economic data: The US non-farm payrolls report, the ISM manufacturing PMI, and the ISM services PMI will be closely watched for any signs of economic weakness or strength.
2. Central bank policy decisions: The ECB and the Fed are both expected to make announcements on interest rates this week. Any hawkish or dovish surprises could have a significant impact on the price of gold.
3. Geopolitical developments: Any escalation in the Russia-Ukraine war or other geopolitical tensions could boost demand for gold as a safe haven asset.
Comment:
Forecast target has been reached