Gold: Next week's key macroeconomic events to keep an eye on

The risk rally that was triggered by coronavirus vaccine optimism caused gold to fall sharply at the start of the week. Although XAU/USD staged a rebound on Thursday and Friday, it closed the week in the negative territory a little below $1,990.

Coming up next week

In the early trading hours of the Asian session on Monday, Industrial Production and Retail Sales data from China will be watched closely by the market participants. 

On Tuesday, Retail Sales and Industrial Production figures will be featured in the US economic docket. Markets expect to see a decline in sales in October and the USD could gather strength as a safe-haven if Wall Street's main indexes react negatively to a disappointing reading.

Previewing the Retail Sales report, "retail sales probably slowed in October, even with a boost from Amazon Prime Day—which was in July last year—and the release of a new iPhone—which was in September last year," said TD Securities analysts. "We expect more pronounced weakening in November and December, reflecting the ongoing fading of fiscal stimulus, rising COVID cases and high seasonal adjustment hurdles."

Meanwhile, market participants will keep an eye on headlines surrounding Brexit negotiations and fresh developments about US President Donald Trump's legal challenges in swing states where his campaign is claiming voter fraud. 

Economic calendar