Price of Gold Fundamental Daily Forecast – G-7 Tension Could Drive Safe Haven Buying Today

Gold futures are trading slightly lower early Friday as the market continues to straddle a key technical chart level while remaining rangebound ahead of several key upcoming events this week-end and next week.

Gold investors have been trading tentatively lately, allowing the other major markets to do the heavy lifting in reaction to geopolitical and economic events.

At 0858 GMT, August Comex Gold futures are trading $1302.40, down $0.80 or -0.06%.

A weaker U.S. Dollar, choppy U.S. Treasury yields and a risk-on, risk-off environment is helping to hold gold in a range. Basically, gold investors aren’t sure which direction to take and are waiting for clarity.

There aren’t any major U.S. economic reports today. However, gold traders will be watching for any major developments from the first day of the G-7 Conference in Canada. There is a lot of tension ahead of the summit because the group of seven seems to be siding against the United States.

At issue is President Trump’s “America First” policies that are causing a global trade war and deep diplomatic schisms.

Coming up on June 12 is the widely anticipated meeting between President Trump and North Korean leader Kim Jong-un.

Traders are also starting to factor in next week’s U.S. Federal Reserve meeting on Wednesday and the European Central Bank’s meeting the following day. The Bank of Japan also has a meeting scheduled for early Friday.

The Fed is widely expected to raise its benchmark interest rate by 25 basis points. However, investors want to know about the number and timing of future rate hikes.

Additionally, speculators are betting the ECB comes through with a timetable setting the terms for the end of its quantitative easing program.

Over the short-run, gold could develop an upside bias if it can sustain a move over $1300.60. The trend will change to up on a trade through $1312.60, but prices could accelerate to the upside on a move through $1315.60.