Price of Gold Fundamental Daily Forecast – Clawing Back Some of Last Week’s Loss

A steady U.S. Dollar and oversold conditions are helping to boost gold prices shortly before the regular session opening on Monday. Investors are trying to claw back some of last week’s more than 1 percent loss.

At 1115 GMT, April Comex Gold futures are trading $1340.70, up $10.40 or +0.79%.

In other news, hedge funds and money managers raised their net long positions in COMEX gold and copper contracts in the week to February 20, U.S. Commodity Futures Trading Commission data showed on Friday.

On Friday, the Fed also said that it sees steady growth continuing and no serious risks on the horizon that might pause its planned pace of rate hikes.

Forecast

Traders will continue to focus on Treasury yields and the U.S. Dollar today after last week’s strength helped drive gold price lower.

We could be witnessing aggressive short-covering today ahead of an event-packed week headlined by U.S. inflation data and the first Congressional testimony by the new head of the Federal Reserve on Tuesday and Thursday.

On Friday, the Fed said that it sees steady growth continuing and no serious risks on the horizon that might pause its planned pace of rate hikes.

Today, investors will get the opportunity to react to a report on New Home Sales, which is expected to show a 655K increase, up from 625K.

FOMC Member Quarles is also expected to deliver a speech. Traders are hoping he offers some clues about future rate hikes.