Good morning, traders. Welcome to our weekly preview of the macroeconomic data and market data that are positioned to matter the most for gold markets and related assets. Gold prices are trading a few dollars higher this morning, following some volatile moves between $1568-75 during the overnight.
Risk aversion in the marketplace is trending higher again, as the numbers of confirmed cases of the coronavirus and, most distressingly, the death toll continue to climb. On the other hand—and this is purely from the standpoint of economic observation—there seems to be a belief in the market that there is now an understanding of the ultimate economic impact of this health crisis. That assumption that things are unlikely to get materially worse, whether it’s correct or not, appears to be muting the flow that we might otherwise expect to see into gold and other safe haven assets.
The other factor that could be weighting on gold prices to start the week is strong headwinds for the commodities complex as a whole, let by more weakness in oil prices. WTI crude barrels are trading at $50 again, and with news that OPEC+ ministers can’t even agree to meet, much less agree on production cuts to support prices, there may not be the safety net some expected.
The spread of the coronavirus and the economic damage left in its wake will remain top of mind for us this week in tracking the market narratives, particularly as we have a light schedule of macroeconomic data.
Read more of the gold price preview for the week of February 10 on the GoldPrice.org website HERE