On Tuesday, gold trading session was marked by a slight decline (-0.1%) on the background of American dollar gains, the index of which for the day added about 0.2% to the opening price.
The focus of investors remains upon two key topics: trade negotiations between the US and China, and Fed policy.
According to the Wall Street Journal, during telephone conversations, China agreed to reduce duties on American cars from the current 40% to 15%. Experts consider this step as a significant progress in the negotiations, increasing the likelihood of concluding a trade agreement between the countries in the ninety-day period set aside for Trump to negotiate.
Despite the lower in expectations on 2019 rate-hike course in US, USD dollar still maintains its position in the market, due to a decline in other G7 currencies. The slowdown in economic growth in the Eurozone and high uncertainty around the UK support the demand for the dollar, which, along with gold, is viewed by many investors as a defensive asset.
The data on the consumer price index in the USA for November can have a very strong influence on the market today. Inflation indicators have a strong influence on the Fed's decisions on the implementation of monetary policy, and in the context of recent changes in the Fed's rhetoric, it is the US statistics that will become the main guideline in assessing the prospects for further monetary policy in the United States. According to experts, the base CPI for the month should increase from 2.1% to 2.2%, while the growth of the indicator month by month should remain at 0.2%. Any data below forecasts can seriously weaken the dollar and vice versa will increase the demand for the yellow metal.