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Gold heads north in Asia with China CPI ahead
On Monday, gold headed north in Asia with China prices as well as remarks from the Fed Chair later this week to set the overall tone on the greenback.
August delivery gold futures soared 0.11%, trading at $1,211.03%.
On Monday, China is expected to report consumer inflation and producer prices for June with the expected 0.1% dip on-month and also a 1.5% gain observed annually. On year producer prices are supposed to add 5.5%.
In the week ahead, market participants are going to pay attention to Fed Chair Janet Yellen's testimony on monetary policy and American data on retail sales and inflation.
The previous week, gold sank to nearly four-month minimums on Friday after a stronger-than-forecast American jobs report spurred the US currency versus a basket of the other main currencies.
The American economy generated up to 222,000 jobs the previous month as the Labor Department announced, which is more than the 179,000 new jobs expected by financial experts.
The market is resilient ahead of the speeches of Fed’s Powell and ECB President Lagarde, but there are still interesting movements.
The uncertainty over US fiscal stimulus and Brexit, and also rising new virus cases deteriorated the market mood. That’s why we can expect the further rally of the US dollar and the fall of riskier assets today.
The market sentiment is mixed, but there are still interesting movements on the market.