Investing.com - This week precious metals traders will be focusing their attention on Thursday’s minutes of the Federal Reserve’s latest meeting, the dollars response to the Fed policy outlook and Friday’s looming U.S.-China trade talks.
U.S. President Donald Trump is due to hold talks with his Chinese counterpart Xi Jinping on the sidelines of the upcoming G20 summit in Buenos Aires and market watchers are hoping that the discussions could lead to a ceasefire in the trade war between Washington and Beijing.
Investors will also be awaiting the release of the minutes from the Federal Reserve’s latest policy meeting and an analysis on the draft Brexit deal from the Bank of England.
A speech on Wednesday by Fed Chairman Jerome Powell will be closely watched after other Fed policymakers sounded more dovish on the economic outlook recently.
The economic calendar also contains updates on the strength of the U.S. economy and the housing market, which has been hit by rising interest rates.
Gold prices ended lower in Friday’s holiday shortened trading session, to end the week flat after pulling back from the two-week highs reached pre-Thanksgiving on Wednesday.
Gold futures were down 0.39% at $1,223.2 on the Comex division of the New York Mercantile Exchange late Friday.
Gold was pressured lower as the dollar strengthened broadly amid deteriorating risk appetite and a steep drop in oil prices, which added to fears that the global economy is slowing.
The U.S. dollar index, which measures the greenback’s strength against a basket of six major currencies, climbed 0.27% to a one-week high of 96.84 in late trade.
A stronger dollar can make dollar denominated assets, like gold, more expensive to potential buyers holding other currencies.
The dollar has pulled back since hitting 16-month highs in early November, as some soft economic data and dovish sounding comments by several Fed policymakers raised the prospect that the Fed may be nearing the end of its tightening cycle.
Elsewhere in metals trading, silver fell 1.36% to $14.282 a troy ounce, to end the week down 0.95%, while copper ended at $2.770, off 0.86% for the day, ending the week down 1.18%.
Ahead of the coming week, Investing.com has compiled a list of significant events likely to affect the markets.
Monday, November 26
The Ifo Institute is to report on German business climate.
European Central Bank President Mario Draghi is to testify about the economy and monetary policy to the European Parliament in Brussels.
Bank of England Governor Mark Carney is to speak at an event in London.
Tuesday, November 27
New Zealand is to release its latest trade data.
The U.S. is to publish a report on consumer confidence.
Wednesday, November 28
The U.S. is to publish revised data on third quarter growth and a report on new home sales.
Fed Chairman Jerome Powell is to speak in New York.
Thursday, November 29
New Zealand is to report on business confidence, while Australia is to publish figures on private capital spending.
In the euro zone, Germany is to release preliminary inflation data.
ECB head Mario Draghi is to speak at an event in Frankfurt.
The UK is to report on net lending, while the BoE is to deliver its analysis of Brexit to the Treasury select committee.
The U.S. is to produce data on initial jobless claims and pending home sales as well as personal spending figures, along with the core PCE price index, which is the Fed’s preferred inflation measure.
The Fed is to publish the minutes of its November meeting.
Friday, November 30
U.S. President Donald Trump and his Chinese counterpart Xi Jinping are due to meet on the sidelines of the G20 conference in Buenos Aires.
China is to publish data and manufacturing and non-manufacturing activity.
The euro zone is to release preliminary inflation data.
Canada is to report on GDP growth and raw material price inflation.
The U.S. is to round up the week with data on business activity in the Chicago area.