On Thursday, gold was able to gain by 0.5%, but most of the day trading took place mainly within a sideways movement, since there were no strong drivers on the market to form a directional tendency.
On Wednesday, gold showed good growth, after Powell’s statements on interest rates approaching to neutral levels, which for many investors is a signal of a possible slowdown in rates of hikes next year. FOMC protocols, published yesterday, generally confirmed these findings, as Fed officials looked less confident in their beliefs about maintaining the pace of quarterly increases in 2019, discussing the degree of negative impact of trade tensions on the US economy. Nevertheless, the protocols confirmed the intention of the regulator to raise interest rates in December. Thus, the uncertainty regarding the implementation of the Fed's monetary policy in 2019 is a strong support factor for gold, but locally high expectations of a rate hike in December, which, according to the CME Group, exceed the probability of 80%, significantly limit the possibilities for further growth in the middle-term.
Today, investors are gradually shifting their attention from economic issues to geopolitical issues. Trump and Xi Jinping's meeting at the G20 summit is likely to be the key event not only of the but also of the month. Many investors hope that the parties will be able to reduce the degree of trade tension, but experts say that after the meeting some agreement is unlikely to be signed, which will include serious concessions on both sides. Most likely, before the meeting of two leaders, investors will take a wait-and-see attitude showing weak market activity.
Among the economic data today we should pay attention to the publication of preliminary values for inflation and the report on the EU labor market.