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Its been a rather muted week for the yellow metal. Following moves in both directions, gold is trading roughly flat on the week as of writing.
In the absence of any key US data, there has been limited movement in the USD, which is typically a big source of direction for gold prices. However, on the back of a slew of better data last week, the greenback has been broadly supported over the week, capping upside moves in gold.
The signing of the US/China trade deal has also taken some of the upward pressure out of gold. With the US and China now legally agreed on the terms of the phase-one trade deal, the market is confident that talks will soon progress onto the second phase of the deal, boosting expectations that the trade war will soon be brought to a proper end. This improved level of optimism around negotiations has again weakened safe-haven demand for gold.
However, the metal has found some support this week on lingering risk factors.
The outbreak of coronavirus in China, which ...
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