The gold price is likely to remain highly dependent on monetary policy developments in the US this week. After the release of US inflation data and a speech by Fed Chairman Kevin Warsh from last week, the market turmoil could possibly continue.
Only in isolated cases will potential triggers be on the agenda of the economic calendar in the coming days.
Gold price chart on a monthly basis
Fed Chief Kevin Warsh eases concerns about interest rate hikes – US inflation remains persistent
At the International Monetary Fund (IMF) meeting in Bangkok, Fed Chairman Kevin Warsh also delivered a speech. However, investors should not have heard any major need for further interest rate hikes in general. On October 28, the US central bank will meet again to decide on the key interest rate. According to the „Fed-Watch Tool,“ 82.8 percent of market participants expect a pause in interest rates and 17.2 percent a rise of a quarter of a percentage point in total. A month ago, 57.6 percent still expected a corresponding interest rate hike.
At the same time, US inflation stood at 3.7 percent in September, higher than economists expected (3.6 percent), which temporarily raised concerns about interest rate hikes on Wednesday.
Only a few data on the agenda this week: Retail managers in focus on Friday
From the perspective of the economic calendar, there may be an impulse on Thursday with the weekly initial applications for U.S. unemployment benefits (14:30).
The purchasing managers from S&P Global will be in the spotlight at 15:45 (US time). The indices for the services sector, manufacturing sector and overall sector are expected to be released.
