Investing.com – The looks likely to remain a significant headwind for gold this week, with bearish price action in the precious metal looking set to continue despite growing risk aversion.
Metals traders will be looking ahead to Federal Reserve Chairman Jerome Powell’s testimony on the economy and monetary policy to a Senate committee on Tuesday.
Powell will likely face questions on a wide range of economic issues, including the potential effect of the Trump administration’s trade policy on the economy.
Markets will be eyeing the outcome of a meeting between U.S. President Donald Trump and his Russian counterpart on Monday amid heightened geopolitical tensions.
Investors will also get updates on U.S. retail sales, housing data and industrial production this week.
Gold prices slid on Friday to settle at their lowest level in nearly a year as the dollar posted solid gains for the week.
for August delivery settled down 0.39% at $1,241.80 on the Comex division of the New York Mercantile Exchange. For the week, prices were down 1%, the fourth weekly loss in five weeks.
The , which measures the greenback’s strength against a basket of six major currencies, ended the week with gains of 0.71%. A stronger U.S. currency makes gold and other dollar-denominated commodities more expensive for holders of other currencies.
Demand for the dollar has been underpinned as recent economic data indicated that the Federal Reserve is likely to remain on track to raise interest rates twice more this year.
The U.S. currency has also been boosted as rising trade tensions fueled safe haven demand for the dollar and acted as a drag on other currencies.
The Trump administration said last week that it plans to impose 10% tariffs on an additional $200 billion in Chinese imports.
Gold prices have failed to garner any support despite growing risk aversion, suggesting the yellow metal is losing its safe haven status.
Elsewhere in precious metals trading, settled down 0.89% at $15.83 a troy ounce, for a weekly loss of 0.91%.
settled at $831.70, 1.74% lower for the day to end the week with a loss of 1.81%. It was the fifth consecutive weekly loss.
Among base metals, for July delivery ended at $2.777, off 0.14% for the day, to end the week down 1.28%.
, Investing.com has compiled a list of significant events likely to affect the markets.
Monday, July 16
Financial markets in Japan will be closed for a holiday.
China is to release data on second quarter growth, fixed asset investment and industrial production.
Canada is to report on foreign securities purchases.
The U.S. is to publish retail sales figures and a report on manufacturing activity in the New York region.
Tuesday, July 17
New Zealand is to release data on consumer price inflation.
The Reserve Bank of Australia is to publish the minutes of its latest policy setting meeting.
Bank of England Governor Mark Carney is to speak and the UK is to publish its latest employment report.
Canada is to report on manufacturing sales.
The U.S. is to publish data on industrial production.
Later in the day, Fed Chairman Jerome Powell is to testify on the monetary policy report before the Senate Banking Committee, in Washington.
Wednesday, July 18
The UK is to publish its latest inflation report.
The euro zone is to release revised inflation figures.
The U.S. is to publish report on building permits and housing starts. Meanwhile, Fed Chairman Jerome Powell is to testify on the monetary policy report for a second day Washington.
Thursday, July 19
Australia is to publish its latest employment report.
The UK is to release data on retail sales.
The U.S. is to publish reports on jobless claims and manufacturing activity in the Philadelphia region.
Friday, July 20
The UK is to report on public sector borrowing.
Finance ministers from the G20 group of nations are to hold the first day of a summit meeting in Buenos Aires.
Canada is to round up the week with data on retail sales and inflation.
Source: Investing.com
