Gold closed the fourth straight week in positive territory. Next direction depends on September Federal Reserve hike bets, FXSTreet’s Eren Sengezer reports.

Markets look for fresh clues regarding the size of the Fed’s next rate increase

“On Tuesday, Building Permits and Housing Starts data for July will be featured in the US economic docket. A sharp decline in Housing Starts could trigger a flight to safety and help the dollar gather strength.”

“On Wednesday, the FOMC will publish the minutes of its July policy meeting. If the minutes show that the Fed sees a heightened risk of recession, the greenback could lose interest and open the door for a leg higher in gold. On the other hand, investors could reassess the Fed’s rate outlook in case they are convinced that the Fed will stay on an aggressive tightening path until they see consecutive drops in inflation figures.”

“In short, XAU/USD is likely to remain inversely correlated with the US T-bond yields mid-week.”