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Price of Gold Fundamental Daily Forecast – Extremely Light Volume Could Limit Price Action

By:
James Hyerczyk

Gold prices are trading mixed early Friday with investors taking profits after posting a gain of nearly 1 percent on Wednesday on weaker U.S. economic

Comex Gold Brick

Gold prices are trading mixed early Friday with investors taking profits after posting a gain of nearly 1 percent on Wednesday on weaker U.S. economic data and concerns among some Federal Open Market Committee members over persistent lower inflation.

At 0828 GMT, December Comex Gold futures are trading $1291.10, up $0.40 or +0.03%.

Comex Gold
December Comex Gold

A weaker U.S. Dollar is helping to provide support for gold early in the session. Volume is expected to remain extremely low with investors still stuck in holiday mode.

Gold traders are facing a difficult challenge at this time because of renewed uncertainty over the number of interest rate hikes in 2018. Investors are approaching the market with caution despite Wednesday’s strong gains which were more than likely fueled by short-covering rather than aggressive buying.

A December rate hike by the Fed is widely expected, however, according to the Fed Fund futures, investors have reduced their expectations of additional rate hikes in 2018 from three to two.

Since there are no fresh economic reports today and the volume is expected to be well-below average, we’re likely to see a relatively flat trade with prices hovering around the previous session close.

Next week, investors will have the opportunity to continue to interpret the meaning of the Fed minutes. Additionally, renewed debate over U.S. tax reform is likely to trigger more than a few volatile responses.

About the Author

James is a Florida-based technical analyst, market researcher, educator and trader with 35+ years of experience. He is an expert in the area of patterns, price and time analysis as it applies to futures, Forex, and stocks.

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