Gold prices were up more than 2% earlier this week after Federal Reserve Chair Janet Yellen emphasized global dangers to growth and inflation, and thus the need to proceed “cautiously” on tightening policy.
Prices of the yellow metal are up nearly 14% so far this year as expectations faded that the Fed would move to normalize interest rates due to fears over a China-led global economic slowdown.
Market players shrugged off data showing that manufacturing activity in China swung into expansion territory for the first time since August this month.
In the week ahead, market players will be turning their attention to Wednesday’s minutes of the Federal Reserve’s latest policy meeting for fresh clues on the timing of the next U.S. rate hike. There are also more than a half-dozen Fed speakers on tap for the coming week, including comments by Fed Chair Yellen on Thursday. Investors will also be looking ahead to the euro zone report on the unemployment rate, the European Central Bank is to publish the minutes of its most recent policy meeting and ECB President Mario Draghi speech.