Gold closed the previous trading week at maximum levels since July this year, amid a weakening dollar and high volatility in equities.
The data on the US labor market published on Friday showed that fewer jobs were created in the economy in November than experts had predicted, while the figure of the previous month was also revised downwards. The data on the average wage coincided with the expectations, and, according to many analysts, allow the Fed to make another rate-hike this year, but the report on the labor market showed that the peak of employment in the US was most likely passed and now on Fed will significantly reduce the rate of rate increases. Now investors are no longer expecting three rate-hikes at 2019, as predicted earlier, but only one.
The fears associated with international trade and the slowdown in global economy growth provide strong support for gold prices. The past week was the worst for the American market since March of this year. Investors are actively getting rid of risky assets giving preference to gold, because a change in expectations regarding future Fed policy significantly reduces the investment attractiveness of the dollar.
This week, traders will continue to carefully study the statistics from the United States, assessing its condition on the reports on retail sales and inflation data.
On Monday, the US is not scheduled for publication of important economic data, so investors in the first half of the day will mostly play out the labor market data received on Friday. Reports on GDP, industrial production and manufacturing in the UK are likely to have some impact on trading.
On Tuesday, the producer price index will be published in the United States, but, most likely, the central event of the day will be the vote in the British Parliament according to the Brexit plan.
On Wednesday, the focus will be on the US consumer price index report, and on Thursday the last 2018 ECB meeting will be held, at the end of which Mario Draghi will give a speech.
On Friday, investors will be watching statistics from China on industrial production and investment in fixed capital, and a report on retail sales in the United States.