By CommoditiesMansion.com
Bearishness to prevail as investors take profit after the record high recorded last week, but the general trend remains to the upside as far as gold remains above 1,376.75 an ounce. The metal sealed last week’s trading near record geopolitical tension in MENA area continue on rising, spurring demand to intensify on haven.
The precious metal’s trend remains to the upside, but due to high prices, investors may seek to profit where analysts project that a selloff of gold will force the metal to depreciate throughout next week before it extend its rise again.
Influential data on gold this week will be Germany’s CPI report, along with the CPI Flash Estimate from the 17-nation economy that will both provide investors with a futuristic outlook in regards of ECB’s monetary policy.
The ECB is expected to raise rates in April’s meeting, where inflation threats have moved to the upside. Investors usually hedge against inflation by targeting gold.
Other data that will have a big impact on currencies, especially the dollar that holds an inverse relationship with the precious metal is UK’s GDP along with the ADP and Non-farm payrolls report from the U.S.
The dollar usually moves inversely with commodities as they are a dollar weighted index, accordingly, with the anticipated strengthening of the dollar, as conditions continue to improve in the U.S., further depreciation is expected for gold.
Expectations signal that the precious metal may reach the support at 1,390.00 an ounce, after rebounding from record highs, while to extend its rise in the upcoming period and return to trading near records.
