By CommoditiesMansion.com
The precious metal is expected to depreciate due to the absence of fundamentals from Asian and European economies, where investors may seek profit taking ahead of US data that is expected to show further improvement in the economy, and thus, affect the dollar and accordingly commodities due to the inverse relationship between the two.
Gold ended last week with gains yet surrendered some of them by the end of the week and especially Friday, after the dollar gained grounds supported by positive growth. The market will keep their eyes on Europe and the developments in the debt crisis, especially as Portugal continues to defy its need for aid.
Investors still look at MEN’s unrest which intensified demand for haven, while fluctuation to mark the week’s trading in gold as inflation reports from Europe is expected to show further increase in the cost of living in the continent, while the world’s leading economy to improve further.
On Monday the income report from the US at 12:30 GMT will be the main highlight and affect the metal with the dollar. The main focus will be on the Feds inflation gauge and the Core PCE which is expected to rise further by 0.2% after 0.1% which will be a good indication for inflation developments in the US and further rise will spur hedge against inflation demand on gold, while otherwise the dollar will prevail with the upper hand.
