Price of Gold Fundamental Daily Forecast – Could Sit Between $1258.30 to $1269.40 All Week

Gold futures are trading slightly higher in a lackluster trade in reaction to a slightly weaker U.S. Dollar. Volume and volatility are extremely light. Barring any surprise news, the market may be range bound until the release of Friday’s U.S. consumer inflation report.

At 0630, December Comex Gold futures are trading $1265.80, up $1.10 or +0.09%.

There weren’t any major U.S. reports released on Monday to drive the price action so gold sat in a range throughout the session. This chart pattern may be repeated today as most major players are likely to remain on the sidelines ahead of Friday’s inflation data which may have an effect on the pace of monetary tightening by the Federal Reserve.

In other news, Minneapolis Federal Reserve Bank President Neel Kashkari said reducing immigration to the United States will reduce economic growth.

St. Louis Fed President James Bullard said the Federal Reserve can leave interest rates where they are for now because inflation is not likely to rise much even if the U.S. job market continues to improve.

“The current level of the policy rate is likely to remain appropriate over the near term,” Bullard told the America’s Cotton Marketing Cooperatives 2017 Conference in Nashville, Tennessee.

Bullard also noted that the dollar had declined in value this year, chalking that move up largely to improved growth forecasts for Europe and the expectation that the European Central Bank will respond by tightening monetary policy.

Bullard also said recent readings of low inflation are “concerning” because they may be temporary but indicative of persistent factors such as better technology that is driving down the price of many goods and services.

The comments by Bullard could be read as bullish since stock traders like low rates.

Forecast

Today, investors will get the opportunity to react to the latest data on JOLTS Job Openings and IBD/TIPP Economic Optimism. These are hardly earth-shattering reports and I expect almost no reaction from traders.

Gold is currently trading inside a major retracement zone at $1258.30 to $1269.40 while testing a minor retracement zone at $1264.90 to $1261.20. Given the low volume and the lack of incentive to take a major position until Friday, I expect gold to trade both sides of the major range.