Gold prices (XAU/USD) have been on a high for the past few weeks following the release of US data that gave a weak signal for the labor market that could weigh on the USD currency position and the geopolitical conflict between the United States and Venezuela.
At 9.45 am, gold prices were at $4,381, up 0.97% since it opened early Monday in Asian trading.
In the near term, economic activity in the United States is quite limited as the last official trading week of the year ends, with many counters closed for the Christmas holiday.
The University of Michigan Consumer Sentiment Index for December failed to meet expectations, as respondents reported an increase in the unemployment rate and a decrease in durable goods purchases for the fifth consecutive month.
Previously, New York Fed President John Williams stated that he did not feel ‘urgent’ to change monetary policy. Williams' shift from dovish to neutral-hawkish stance supports a modest recovery in the Greenback.
This week, US economic attention will be focused on data due on December 23, despite a shortened trading week due to the Christmas and New Year holidays.
Investors will be watching key data such as the ADP 4-week average of Employment Changes, preliminary third-quarter growth figures, Durable Goods Orders for October, and the Industrial Production reports for October and November.
