Key events to affect XAU/USD prices (June 24-28)
Every Sunday, I’m posting a weekly list of upcoming financial events and data releases. These are crucial for gold traders, as they provide insights into economic trends and global bank policies that can have a major effect on the gold market.
Hello, fellow traders!
Looking ahead to next week, there are several key events that could shake up gold prices (XAU/USD). If you're trading or investing in gold, you'll want to keep an eye on these.
We’ve got the U.S. GDP numbers for the quarter, the latest on U.S. personal spending, China's Manufacturing PMI from NBS, the U.S. Core PCE Price Index for the month, and the preliminary year-over-year inflation rate.
Each of these reports gives us a snapshot of how the economy is doing, which can have a big impact on gold prices.
Let's dive into the specifics and see what events we should be keeping an eye on:
Monday, June 24
Germany IFO Business Climate Index: measures the current business environment and expectations for the future in Germany. It's based on a survey of around 9,000 German companies from different sectors like manufacturing, construction, wholesale, and retail. The companies rate their current business situation and their expectations for the next six months.
Why it matters for Gold: If the index shows that German businesses are optimistic, it suggests a strong economy. This can lead to a stronger Euro and encourage investors to move money into stocks and other investments perceived as higher risk, reducing the demand for Gold.
Tuesday, June 24
Westpac Consumer Sentiment Index: tells us how confident or worried Australian consumers are about their finances and the economy. If the index is high, it means people are feeling positive and are more likely to spend money, which is good for the economy.
Why it matters for Gold: High index indicates that consumers are confident about their financial situation and the economy and leads to increased spending and economic growth. When the economy is strong, investors might prefer riskier assets like stocks, reducing the demand for safe-haven assets like Gold.
Canada Consumer Price Index (CPI) YoY: a key indicator of inflation, showing how much prices have increased or decreased compared to the same month in the previous year.
Why it matters for Gold: Significant increase indicates rising inflation and increased demand for Gold as investors seek to keep their money safe.
Wednesday, June 26
GfK's Consumer Confidence Index: a monthly survey that is asking consumers about their expectations regarding their personal financial situation, the general economic situation, and their propensity to make major purchases.
Why it matters for Gold: A strong economy reflected by high consumer confidence can strengthen the Euro. Since gold is priced in US dollars, a stronger Euro can make Gold less expensive for European buyers, possibly increasing demand. At the same time, high consumer confidence can lead investors to riskier assets like stocks over safe-haven assets like Gold, resulting in lower demand and a decrease in Gold price.
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