Price of Gold Fundamental Daily Forecast – Holidays in U.S., China Likely Means Below Average Volume

Published: Feb 19, 2018, 09:43 UTC1min read
Comex Gold
This week, investors could get some indications on the direction of inflation when the U.S. Federal Reserve releases its Federal Open Market Committee meeting minutes on Wednesday. A hawkish Fed could drive gold prices lower.
Most Popular

Gold prices are edging lower early Monday in reaction to a stronger U.S. Dollar and as investors lighten up on hedges against inflation. There has been no follow-through to the upside, following last week’s 2.4 percent gain, its best weekly performance since September 1.

At 0913 GMT, April Comex Gold is trading $1349.60, down $6.60 or -0.49%.

Advertisement
Know where Gold is headed? Take advantage now with

Your capital is at risk

In other news, hedge funds and money managers cut their net long positions in COMEX gold in the week to February 13, U.S. Commodity Futures Trading Commission (CFTC) data showed on Friday.

Daily April Comex Gold

Forecast

Last week, gold showed almost no reaction to the recovery in U.S. equity markets and the rise in U.S. Treasury yields to a 4-year high. The focus for investors, instead, was on inflation after the release of the stronger-than-expected U.S. consumer inflation report.

This week, investors could get some indications on the direction of inflation when the U.S. Federal Reserve releases its Federal Open Market Committee meeting minutes on Wednesday. A hawkish Fed could drive gold prices lower.

Today, the U.S. is on a bank holiday so there are no major reports. The futures markets have shortened sessions but the cash stock and bond markets are closed. This should lead to slower than usual trading. A holiday in China could also lead to below average volume. Nonetheless, investor should continue to watch for volatility due to the thin trading conditions.

The main trend is up, but the early trade suggests there is a downside bias developing. If the selling pressure picks, we could see a move into at least $1336.70 to $1330.20 over the near-term.

Don't miss a thing! Sign up for a daily update delivered to your inbox

Latest Articles

See All