Price of Gold Fundamental Daily Forecast – Hedge Fund Managers Cut Net Long Positions

Gold prices are being pressured on Monday shortly before the regular session opening on easing concerns over a potential escalation in the simmering trade war between the United States and China.

Speculation that negotiations between the two economic powerhouses may be going on behind the scenes is helping to calm fears that the tit-for-tat actions we saw last week would eventually escalate into a full-blown trade war.

At 1047 GMT, June Comex Gold is trading $1331.40, down $4.70 or -0.35%.

Gold rallied earlier in the session in a follow-through move related to last week’s worries over trade friction and the softer than expected U.S. Non-Farm Payrolls report. Both events helped drive down demand for higher risk assets including U.S. stocks and the U.S. Dollar, while driving up demand for safe-haven gold.

In other news, hedge funds and money managers cut their net long position in COMEX gold in the week to April 3 and boosted their net short position in silver to another record, U.S. Commodity Futures Trading Commission data showed on Friday.

Forecast

With the dollar trading higher and stocks expected to open stronger, we’re expecting gold to remain under pressure throughout the session. Furthermore, gold changed its trend to down last week on the daily chart which suggests investors may already be giving up on the upside potential of the market.

Further supporting the possibility of weakness in the gold market are upbeat comments from President Trump, who predicted on Sunday that China would take down its trade barriers, expressing optimism despite escalating tensions between the nations.