Gold rose on Wednesday after a posible meeting between the US and China to discuss trade was reported to be planned by US Treasury Sec Mnuchin. Trade war tensions have pressured the yellow metal making the US the most desired destination. Signs of goodwill form the US unlocked risk appetite and investors are taking gold to $1,207.
Gold is still sensitive to geopolitical factors. The economic calendar will bring inflation data in the US to the forefront. A higher inflation scenario could lock in two rates hikes for the U.S. Federal Reserve and keep gold in the current tight range. A solid CPI number in the States and the beating of the trade war drums are the worst case scenario for commodities this week.
