Politicians were predictably silent on details of the proposed European bailout structures after last week’s European finance ministers meeting, giving little in the way of directional cues for gold.
The effect of US dollar strength on the gold price can clearly be seen looking at gold in US dollars compared to gold priced in Euros.
Key events to watch this week
Economic data releases are fairly light this week, with US industrial production, retail sales and housing data likely the main focus.
Fed Chairman Bernanke’s testimony to Congress will be the main event for precious metals investors, with any hints of openness to QE3 likely adding support to prices. [Gold ETF Weakness Explained]
Movements in the US dollar will also likely continue to have a strong effect on precious metals prices, with developments in Europe playing the dominant role.
ETFS Physical Swiss Gold Shares (NYSEArca: SGOL)
