On Tuesday, gold rose 0.5%, setting a new local maximum in more than a month of trading. The main driver of movement in the market remains USD dollar, which is locally turned under pressure for a short time on a number of important factors. Since gold is denominated in dollars, its decline now contributes to the growth of the yellow metal quotations.
One of the key topics in the market remains the US-China trade relationship. Today, the Chinese Ministry of Commerce has confirmed that it is working with the United States to resolve trade disputes within the framework of the agreements that were reached by the leaders of the two countries at the G20 summit this weekend. Earlier, investors considered the dollar as the main protective asset against the risks associated with international trade. After the meeting of Trump and Xi Jinping, concerns about a possible exacerbation of the conflict between the United States and China decreased and investors reduced their positions in the US currency.
Today the economic calendar has undergone major changes in connection with the declared national mourning in the United States. Today, the funeral of the 41st US President George W. Bush will be held in US, and therefore many events have been canceled in the country. So, on Wednesday, speech of Fed Chairman Jerome Powell was scheduled. This event is postponed to another day. Also in connection with the mourning will be closed the largest US stock exchanges NYSE and NASDAQ. Of the remaining important events in the economic calendar that may affect the course of trading today, it is worth highlighting the speech of the ECB President Mario Draghi, as well as the publication of data on the PMI of the services sector in Europe and the USA.