Good morning, traders. Welcome to our preview of the first full week of trading in 2020. As always, we’ll be talking a look at the macroeconomic data items on this week’s calendar that have the most relevance for traders of gold and other precious metals, as well as the US Dollar and its major trade partners.
This morning, we are seeing the new week begin broadly as we ended the last one: with pervasive market turmoil driven by the escalation of tensions between the US and Middle Eastern nations—a group that now includes American ally Iraq as well as Iran. Global equities have been pushed lower along with the dollar while the flight to safety has boosted Treasuries and of course gold.
The yellow metal has traded as high as a 7-year high since markets reopened for the week, although at the time of writing we are seeing an optimistic rebound in US equity markets that has pulled gold spot prices back to a still-elevated level around $1565/oz.
The slate of economic data this week is fairly light before Friday’s Jobs Report, so that only emphasizes the fact that the core driver for gold and US Dollar trading this week will be the evolution of the tension around the Middle East. Markets will also look for the next step in US-China trade negotiations: there are reports that the US President’s announced January 15 signing date for a “phase one” agreement is moving forward, but still no official confirmation from the Chinese delegation.
Read more about the metals market preview for the week of January 6 – January 10 on the GoldPrice.org website HERE