Gold closed Monday's session with growth by 0.15%, but the market is still trading in a tight price range, amid ongoing uncertainty.
Yesterday, weak China economic data on export/import heightened investors' fears about the prospects for the global economy and provided good support to the quotes. This news had a significant pressure on equities and risky assets, which, as a rule is a good sign for gold as investors buy it to reduce risks.
Another important factor influencing gold remains the American dollar, in which the yellow metal is traded. Yesterday, US currency was trading with a moderate decline, in the absence of important macroeconomic data from the US on the market. Recently, the dollar has come under serious pressure, amid a sharp softer Fed officials. Obviously, in the next few months, the Fed will not conduct changes in monetary policy, which somewhat reduces the level of demand for the US currency.
Fed policy will remain in the center of investors' attention, since today three FOMC representatives are scheduled to speak at once - Kashkari, George and Kaplan. Their comments will help assess the current sentiment in the Fed leadership and predict possible options for further developments. Currently, the overwhelming majority of investors expect the Fed not to raise rates at least until June of this year.
Among the published statistics for today, the focus will be upon data on producer price index. Experts predict the index to decline from 0.1% to -0.1%, which may increase the pressure on the dollar, since it is a leading indicator of consumer inflation, the slowdown of which will delay the possible start of a new rate increase cycle in the US. Of course, all this is very positive news for gold.
Investors will follow the news of geopolitics as WELL. First, it is worth highlighting the vote in the British Parliament on the Brexit plan proposed by the government.