Key events to affect XAU/USD prices (Aug 12 - Aug 16)
Hello, fellow traders!
This week's economic calendar is packed with crucial indicators and reports from major economies around the world. From inflation expectations to GDP growth rates, these releases will provide valuable insights into the current state of the global economy.
Here’s a snapshot of all the high-priority economic events for August 12-16.
Let's dive into the specifics:
Monday, August 12
The US NY Fed 1-Year Consumer Inflation Expectations: reflects consumers' expectations about the rate of inflation over the next year. Essentially, it measures what people think will happen to prices of goods and services in the near future.
Why it matters for Gold: If consumers expect higher inflation in the coming year, it often signals that the cost of living will rise. Investors might buy Gold (and push prices higher) to protect against this inflationary risk, as Gold tends to hold its value better than currency during periods of high inflation. The release of this data can cause short-term volatility in the XAUUSD market, as traders quickly adjust their positions based on the new information.
The US Department of Agriculture WASDE report: provides comprehensive forecasts and analysis of global agricultural markets, including key commodities like corn, wheat, soybeans, cotton, and more.
Why it matters for Gold: If the WASDE report leads to higher commodity prices, it could strengthen the USD due to increased export revenues from agricultural goods, which might weigh on Gold prices. On the other hand, lower commodity prices might weaken the USD, possibly boosting XAU/USD as gold becomes more attractive in relative terms.
Tuesday, August 13
Australia Westpac Consumer Confidence Change: tracks changes in consumer confidence levels. It measures the monthly percentage change in a survey that assesses Australian consumers' sentiments about the economy, personal finances, and their willingness to spend.
Why it matters for Gold: Australia is a significant Gold producer. If the Westpac Consumer Confidence index shows a strong increase, it may suggest a more robust Australian economy, leading to a stronger AUD and lower XAU/USD prices since Gold would become more expensive in other currencies, potentially reducing global demand. On the other hand, a sharp decline in confidence could indicate economic concerns, prompting a risk-off sentiment in global markets. This might increase demand for safe-haven assets like Gold, driving up XAU/USD prices.
Australia NAB Business Confidence: reflects the level of confidence among Australian businesses regarding economic conditions over the next few months.
Why it matters for Gold: High business confidence usually means businesses expect the economy to do well. This can lead to 1/ less demand for Gold as a safe-haven asset; 2/ potential strengthening of the Australian dollar; 3/ possible downward pressure on Gold prices. Plus, strong business confidence often increases investors' willingness to take risks and lead to more robust investment in stocks or other higher-risk assets versus Gold.
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