Gold prices ended Monday steady as the markets await an onslaught of data this week that could potentially set the tone for gold prices for the foreseeable future. The weekend did not appear to produce any significant new headlines around the world, and gold will likely be primarily driven this week by data should there be a lack of new headlines.
Markets and investors will get the latest readings this week on Q2 GDP, PMI, the ADP jobs report, housing data and more. The FOMC meeting will conclude on Wednesday afternoon and investors will pay close attention to any remarks made by the Fed about current economic conditions as well as any new clues about the Fed's plans with regards to monetary policy going forward. Although no significant changes in the Fed's stance are expected, this always has the potential to move markets-especially precious metals.
On Friday, markets and investors will get the U.S. Department of Labor's jobs report for the month of July. This will likely be the biggest economic event of the week in addition to the FOMC statement,and also has the potential to impact markets. Should the numbers released be inline with expectations or better, it could potentially strengthen the dollar and weaken gold and precious metals. Should the data disappoint, it is possible that stocks could see some pressure and gold could potentially benefit.
Gold continues its range bound trade, and has once again reclaimed the psychologically important $1300 level. Gold will likely tip its hand sooner rather than later, however, and we will see in what direction the market decides to breakout. The bulls seem to be waiting in the wings for stock market weakness before attempting a more sustainable rally in prices.
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