In recent weeks, it has become increasingly clear that further quantitative easing and other forms of easing from the US Fed and the ECB are the main catalysts gold investors are waiting for.
The Fed last week has made it clear that with inflation now under control, its focus is increasingly skewed towards the second objective of its double mandate – job creation. So while nonfarm payrolls beat expectations, the sustainability of job creation will be critical for expectations of future stimulus and the gold price.
Key events to watch this week
Market focus will revert to macroeconomic developments after last week’s host of central bank meetings.
Key data releases are China’s industrial production and retail sales numbers, which will show whether Chinese policymakers are making headway with stimulus efforts or whether more needs to be done to shore up the world’s second largest economy.
Additionally, industrial production for Germany will give a clearer picture of how infected the Eurozone core is becoming as a result of the weakness of the periphery.
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