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The yellow metal has had a strong start to the first week of 2020. Prices broke out above the 1522.75 level for the first time since September 2019.
The move came on the back of a slide lower in both USD and US equities in response to fears of military conflict between the US and Iran. Tensions rose due to the US accusing Iran of being behind the attack on the US embassy in Iraq. These fears are driving safe-haven inflows into gold currently.
Away from these geopolitical risks, the key driver for metals in the short term remains the trade negotiations between the US and China. Trump declared this week that the two leaders will officially sign the phase-one trade deal on January 15th. He added that the two leaders would soon meet up in Beijing to progress talks onto the next round of negotiations aimed at delivering a second phase of the deal.
The FOMC meeting minutes due later today will be closely watched by metals traders.
At its last meeting, the Fed kept rates on hold. However...
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