At the end of Monday session, gold did not show a clear directional movement, completing trading day with a result of + 0.15%. At the same time, sellers today completely leveled yesterday’s losses and now the instrument is trading down 0.18%.
Weekly start consolidation is now associated with a lack of important macroeconomic and geopolitical news. Traders are expecting for new drivers, which are not yet on the market. Also recall that on November 23, the G20 summit will start in Argentina.
The most important event of Monday session was Federal Reserve Bank of New York, John Williams speech, who confirmed the Fed’s intention to continue the process of gradual and steady increase in interest rates. At the same time, Williams refrained from commenting on the future plans of the Fed in 2019, which now causes the greatest interest of investors. Many traders already doubt that the regulator will be able to continue the current monetary policy, amid an unexpected slowdown in global economic growth. Earlier, in an interview with the Wall Street Journal, the head of the Federal Reserve Bank of Philadelphia expressed doubts about the advisability of raising the rate in December, which is widely expected. As an argument, Harker cited inflation data, which so far does not greatly exceed the predicted values. Recent economic data indicate a possible reduction in inflationary pressure in the medium term, which will inevitably affect the future policy of the Fed.
The high volatility in the stock markets in October once again returned to gold the status of the main defensive asset, but it is clear that the Fed policy and the dynamics of the dollar exchange rate still have a key impact on trading. The influence of these factors fully compensates for the increased geopolitical and economic risks that force investors to pay more and more attention to gold. The simultaneous influence of differently acting factors leads to the absence of a clear trend movement in gold.