The anticipation of an increased in the interest rates of US central bank that was planned to rise three times this year caused the slipping of gold prices.
Meanwhile, the easing of military tensions in Syria and the declining of persistent fears of trade war between United States and China triggered the collapse in gold prices. Earlier, the United Kingdom planned to join US and France allied forces over possible military action in Syria that could lead to a direct confrontation between Western and Russian forces. Military action was caused by alleged use of chemical weapons by the president of Syria, Bashar Al Assad, in attacks that occurred in Douma, Syria. Russia considered to defend the president of Syria over the use of chemical weapons.
Last week US economic data that was released mostly positive. The positive data can be seen from US’s Retail Sales YoY for the month of March was increased by 0.40%, US’s Building Permits MoM for the month of March was increased by 6.60%, US’s Housing Starts MoM for the month of March was increased by 5.20%, US’s Capacity Utilization for the month of March was increased by 0.30%, US’s Manufacturing Production YoY for the month of March was increased by 0.50%, US’s Philadelphia Fed Manufacturing Index for the month of April was increased by 4.04%, and US’s Continuing Jobless Claims for the month of April was decreased by 0.80%.
European Central Bank Meeting
ECB is scheduled to meet on Thursday. Although no changes on policy were expected, investors were likely to watch any expectation given by the central bank officials regarding any European economic activities or inflation. Will this meeting accelerated the gold’s trend by affecting the market risk sentiment and the move of US Dollar?
Trump Accused OPEC to Drive the Oil Price
Last Friday, Trump accused OPEC inflated the oil prices after showing willingness to further tighten crude markets. Be aware of this issue that could escalated at any time and affected the market risk sentiment. Will the gold price be supported by the issue or the trend of gold price become accelerated?