Gold prices rose for a fifth straight week to hit four-month highs on Friday, on the back of a weak US Dollar. Prices were also strengthened by news of a coalition deal in Germany between the ruling party and the Social Democrats. Gold prices hit session highs of $1,339.31, which was the highest price gold had attained since September 2017.
In focus for the week is two pieces of data from China:
- Gross Domestic Product data, which economists expect to come in at 6.7% (down 0.1% from the previous figure).
- Industrial Production, which is expected to remain unchanged at 6.1%.
These are two of the most important data releases in the Forex market as they provide information on the health of the Chinese economy, where 40% of global production takes place. Chinese economic data tend to have far-reaching implications for the global economy. The major driver of gold prices is global risk-on, risk-off sentiment. China’s GDP and Industrial production data will be a pointer as to what gold prices will do in the coming week.
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