Key events to affect XAU/USD prices (Aug 19 - Aug 23)

Hello, fellow traders!

This week we’ll be watching closely key minutes from Australia and U.S. central banks, important inflation data from Canada and Japan and Germany’s manufacturing activity. And, of course, Fed Chair Powell’s speech at the end of the week could be a game-changer for Gold prices.

Here’s a snapshot of all the high-priority economic events for August 19-23.

Let's dive into the specifics:

Tuesday, August 20

• Reserve Bank of Australia's (RBA) Meeting Minutes: a detailed account of the discussions and decisions made by the Reserve Bank of Australia's policymakers during their most recent monetary policy meeting.

  • Why it matters for Gold: If RBA is considering raising interest rates due to rising inflation or economic growth, the Australian dollar might strengthen. This could lead to a short-term drop in XAU/USD, as a stronger AUD can put downward pressure on Gold prices. Plus, if the RBA expresses concerns about the economic outlook, such as a slowdown in growth or global uncertainties, this could increase demand for Gold as traders seek safety.

• Canada’s Inflation Rate YoY: measures the percentage change in the price of goods and services compared to the same month in the previous year; it’s one of the most critical indicators of economic health that affects the purchasing power of a currency.

  • Why it matters for Gold: A higher-than-expected inflation rate may lead the Bank of Canada (BoC) to consider tightening monetary policy by raising interest rates. Plus, if inflation is significantly higher, it may lead to concerns about global inflationary pressures, which can increase demand for Gold as a hedge against inflation, potentially pushing XAU/USD higher. Conversely, if the inflation rate is lower than expected, it could reduce immediate fears of inflation, potentially leading to a decline in Gold prices.