FXEMPIRE
All

Price of Gold Fundamental Daily Forecast – Higher Despite Firm Yields, Demand for Risk

In Europe, the new head of the European Central Bank (ECB) Christine Lagarde will be giving her first speech in the role later in the day and traders expect she will stick to an easy policy script left by her predecessor, Mario Draghi.
James Hyerczyk
Comex Gold

Gold prices are inching higher Monday but volume is light as increasing risk appetite amongst investors, driven by optimism on U.S-China trade talks and fading fears of a global economic slowdown, are keeping many of the major speculative buyers on the sidelines.

Prices may be up, but the tight inside range suggests investor indecision and impending volatility. Higher Treasury yields and increasing demand for risky assets are keeping a lid on prices today. The dollar is also edging higher against a basket of currencies, which is leading to a drop in demand for dollar-denominated gold.

At 13:33 GMT, December Comex gold is trading $1514.90, up $3.50 or +0.23%.

In Europe, shares soared to a near two-year high on strong earnings reports and hopes for a trade deal between Washington and Beijing. This is providing resistance for gold. However, weak manufacturing data from major European regions indicated further uncertainty in global growth, which is supportive of demand for bullion as a safe-haven asset.

On the trade front, the United States and China on Friday said they made progress in talks aimed at bringing an end to a nearly 16-month-long trade war that has harmed the global economy. Furthermore, U.S. officials have gone as far as saying a deal could be signed this month.

Friday’s stronger-than-expected U.S. Non-Farm Payrolls report also helped ease tensions over U.S. economic weakness. This followed a largely expected 25-basis point rate cut by the U.S. Federal Reserve.

In other news, speculators increased their net long positions in both gold and silver in the week to October 29, data from the Commodity Futures Trading Commission (CFTC) showed.

Daily Forecast

It’s a slow economic report day in the United States with Factory Orders being the only release. It is expected to come in at -0.5%.

In Europe, the new head of the European Central Bank (ECB) Christine Lagarde will be giving her first speech in the role later in the day and traders expect she will stick to an easy policy script left by her predecessor, Mario Draghi.

Lagarde’s comments are likely to have an effect on the Euro. A positive effect could drive the Euro higher, which would weaken the dollar and possibly drive up demand for dollar-denominated gold.

Don't miss a thing!
Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Latest Articles

See All

Expand Your Knowledge

See All
IMPORTANT DISCLAIMERS
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
RISK DISCLAIMER
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.
FOLLOW US