The troy ounce of the precious metal closed the week virtually unchanged near $1,730 after staging a decisive rebound in the second half of the week. Although the XAU/USD pair seems to be struggling to find direction since surging to fresh multi-year highs at $1,765 earlier in May, next week's key macroeconomic events could change that.
Coming up next week
On Monday, the IHS Markit will release the final reading of May Manufacturing PMI data for China, Germany, the eurozone, Canada and the United States. Later in the day, the ISM's Manufacturing PMI from the US will be featured in the economic docket as well. If these data show the positive impact of reopenings on the manufacturing sector, risk-on flows could weigh on gold.
On Wednesday, the IHS Markit will publish the final version of Services PMI data for China, Germany, the eurozone and the United States. Unemployment Rate figures for Germany and the euro area will be released during the European session.
On Thursday, the European Central Bank (ECB) will announce its interest rate decision and publish the monetary policy statement. If the ECB expands its Pandemic Emergency Purchase Programme (PEPP) we could see a positive reaction in global stock markets, which could make it difficult for gold to find demand as a safe-haven.
On Friday, the Nonfarm Payroll Report (NFP) from the US will be watched closely by the market participants.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.