Gold prices hit lowest level since July

What are the markets awaiting this week?

By Laila Eid | @Laila Eid | 14 August 2023

close (2)
  • Gold records third consecutive week of decline

  • All attention focused on FOMC meeting minutes

  • The Reserve Banks of Australia and New Zealand to announce interest rates this week

Gold prices experience decline

During today's trading session, gold prices experienced a drop, reaching their lowest level since the start of July at $1905 per ounce. This report highlights the uncertainties surrounding the Federal Reserve's approach to tightening monetary policy, alongside the increase in US bond yields. These factors have prompted investors to move away from the safe-haven asset. Consequently, gold has shown negative performance for the third consecutive week.

What are the markets looking for this week?

The markets have maintained stability throughout the initial movements of this week. Notably, attention has been drawn to oil prices, which have experienced a decline since the onset of the Asian trading session. Worth mentioning is the positive performance of WTI over six consecutive weeks. As the week progresses, the markets anticipate several crucial economic data releases.

On Tuesday, the Reserve Bank of Australia is scheduled to announce the outcomes of the Australian Monetary Policy Committee meeting at 1:30 am GMT. Investors will be keen to discern the bank's forthcoming direction regarding interest rates. Simultaneously, the British Office for National Statistics is set to publish the jobs report, with expectations indicating that the unemployment rate will remain steady at 4.0%. Additionally, the Canadian CPI reading is anticipated. It is projected that Canada's inflation rate will moderate to 2.7% from its previous 2.8% on an annual basis. On a monthly basis, inflation is expected to rise by 0.3%. The conclusion of Tuesday sees news from the US Census Bureau, which will unveil the Retail Price Index for July.

Moving to Wednesday, the central bank of New Zealand will announce its interest rate decision. Expectations suggest it will be maintained at 5.50% for the third consecutive month, marking the highest rate since October 2008. This day also witnesses the release of inflation data and the British PPI, with predictions pointing towards a deceleration in the inflation index to 6.8%. As the day concludes, attention shifts to the minutes of the Federal Reserve meeting. Federal Reserve Chairman Jerome Powell indicated in the last meeting that the bank's forthcoming decisions will be grounded in economic data, including inflation figures and the jobs report.

Thursday brings data from the Australian Bureau of Statistics, which will provide unemployment data for July. Forecasts predict a rise in the unemployment rate from 3.5% to 3.6%. The week reaches its conclusion with a focus on Britain and the release of the Retail Price Index.