Investing.com – Gold traders will keep their focus on fresh geopolitical developments surrounding slated for next month.
Ongoing trade negotiations between the U.S. and China will also keep investors on their toes.
On the data front, , as the calendar rolls to June from May, with the monthly U.S. jobs report in the spotlight.
Besides the employment data, this week’s holiday-shortened calendar also features a report on personal consumption expenditures (PCE) inflation – the Federal Reserve’s preferred metric for inflation – as well as the second estimate of GDP growth for the first quarter.
Markets in the U.S. will remain closed on Monday for Memorial Day.
, pressured by strength in the U.S. dollar, but prices held just above the key $1,300-an-ounce level to score a gain for the week.
for June delivery settled down 70 cents at $1,303.70 a troy ounce on the Comex division of the New York Mercantile Exchange late Friday, but climbed roughly 1% for the week.
Prices briefly rose to a near two-week high of $1,307.20 early Friday after President Donald Trump announced the cancellation of a June 12 meeting with North Korea’s leader, citing the hermit state’s “open hostility.”
But they pulled back from their highs after a senior official from Pyongyang said its leader Kim Jong Un is still willing to meet.
Meanwhile, the dollar rose against a basket of peers to its highest since mid-November on Friday, boosted by its widening yield advantage over the other major currencies.
The , which measures the greenback against a basket of six currencies, was up around 0.5% at 94.21, after hitting a high of 94.24, a level last seen on November 14.
A rising dollar tends to pressure commodity prices, which are denominated in the U.S. currency and become more expensive to holders of other currencies when the dollar appreciates.
Investors have fully priced in a rate rise at the Fed’s next policy meeting on June 12-13, according to Investing.com’s . However, Wall Street remains divided over how many more time the central bank will raise interest rates after that.
The probability of three more rate hikes by the end of this year, rather than two, decreased after the minutes of the Fed’s May meeting released last week were seen as more dovish than markets had expected.
Expectations for higher interest rates tend to be bearish for gold, which struggles to compete with yield-bearing assets when rates rise.
Elsewhere in precious metals trading, declined 0.8% at $16.54 a troy ounce, to eke out a weekly gain of 0.6%.
Among base metals, ended at $3.078, down 0.6% for the session, but up 0.5% for the week.
Ahead of the coming week, Investing.com has compiled a list of significant events likely to affect the markets.
Monday, May 28
Markets in the U.S. will remain closed for Memorial Day.
Tuesday, May 29
The U.S. Conference Board is to release data on consumer confidence.
Wednesday, May 30
In the euro zone, Germany is to release preliminary inflation data along with retail sales figures.
The U.S. is to release the ADP nonfarm payrolls report as well as the second estimate of GDP growth for the first quarter.
The Bank of Canada is to announce its latest monetary policy decision and publish its rate statement.
Thursday, May 31
China is to publish PMI data on manufacturing and service sector growth.
The euro zone is to release a preliminary inflation estimate.
The U.S. is to publish data on personal income and spending, which includes the personal consumption expenditures inflation data, as well as reports on initial jobless claims and manufacturing activity in the Chicago region.
Friday, June 1
China is to publish its Caixin manufacturing index.
The U.S. is to round up the week with the nonfarm payrolls report for May, while the Institute for Supply Management is to publish its manufacturing index.