- Gold fell last week (XAU -1.2%, LBMA -1.4%) as the stock market rallied and yields rose the most in six years.
- Gold fell back to the important level of ~$1,500 which could act as support in the interim.
Potential gold price drivers this week:
- Oil had the largest intraday move in history last evening following the Saudi Arabia oil field bombing which impacts 5% of the global oil supply; this has gold bid with concerns about potential retaliatory actions.
- Rate decisions from the FOMC, BOE and BOJ could drive gold prices; US markets are pricing in 25bps cut.
- Markets will continue to weigh news out of the UK where PM Boris Johnson is expected to meet with EU officials on Brexit.
- Quadruple-witching in the US on Friday, when expiration on futures and options on indices and stocks occur on the same day; this is often met with increased volatility and volumes.