Gold traded both sides of unchanged overnight but eased a bit coming into this morning's trading, as there are several broad political and economic events over the coming days that could send prices in either direction.
President Trump's meeting with the North Korean leader, China/US trade talks, the possibility of re-vote on Brexit, and Fed President Powell's testimony in front of the Senate Banking Committee are all events that could turn positive or negative on a dime.
Regarding China trade, it seems that any improvement could pressure the dollar and support gold. The market already saw some excitement last week from the delay of the tariffs, and this seems to have boosted expectations. There have been statements in the press that the Powell testimony might offer an opportunity to offset some of the dovish commentary of late, and if that happens, it could pressure gold.
The threat of strike action in South Africa lends some fundamental support, although it has a stronger bearing on the PGM markets. Overnight the dollar index briefly slid below 96.12, but it did not ignite a selloff or any currency-related buying interest in the metals. However, if the dollar resumes its downtrend, we could see April gold move back to the $1,350 level.
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