If the US CPI declines due to coronavirus, the Dollar's real interest rate may stay in positive territory even if the FED cuts the rates on March 18th. This means pressure for Gold prices.
Although the global economy signals a return from the bottom and major central banks do not signal additional easing, this outlook may be reversed by the US-China talks. The main determinants of gold prices will continue to be US-China developments.
While the markets were focusing on Brexit vote in the UK Parliament, CB Governors continue to send "easing in monetary policies" messages via the IMF and World Bank's 2019 Fall Annual Meetings in Washington.
The latest decline in DXY appears to be just a technical correction. Trump does not want a strong USD, however, the Fed does not seem to be dovish enough.
Last week, we had a fundamental triangle pattern that helped Sterling’s recovery. Rising hopes for a better Brexit deal helped GBP to gain ground against all major currencies.
Another shock to Crude Oil prices came from China which plans to tax a host of American goods including crude oil starting September 1, in a counter move to the Trump Administration’s latest round of tariffs.