Price of Gold Fundamental Daily Forecast – Major Trade Deal News Needed to Get This Market Rolling Again

The up and down action in gold is continuing on Thursday with the market trading lower shortly before the regular session opening after posting a solid gain the previous session. Traders haven’t committed to either direction with any conviction since October 11 when President Trump announced phase one of a partial trade deal between the United States and China.

At 09:50 GMT, December Comex gold is trading $1491.00, down $4.70 or -0.31%.

Adding to the uncertainty in gold is the confusion over Brexit after the longwinded project entered a fresh holding pattern. Earlier this week, Britain’s parliament backed a withdrawal deal, but rejected the government’s tight timetable, while European Union member delayed deciding whether to grant a three-month extension to the October 31 leaving date.

According to CNBC, “EU leaders on Wednesday considered whether to give Britain a three-month Brexit extension, and Prime Minister Boris Johnson said that if they do so he would call an election by Christmas.”

“However, there are still plenty of hurdles left, and Johnson’s ability to deliver on a “do or die” pledge to get Britain out of the EU by October 31 is in doubt, after parliament rejected a three-day timetable to enact his agreement.”

Meanwhile the protracted trade conflict between the United States and China continues with both sides offering little this week to move gold in either direction. On Tuesday, Chinese Vice Foreign Minister Le Yucheng said Beijing and Washington had achieved some progress in trade talks.

Even with the U.S. Federal Reserve expected to cut rates at next week’s policy meeting on October 30, the Bank of Japan likely to implement some kind of stimulus measures on October 31, and the Reserve Bank of New Zealand likely to cut rates 25-basis points in November, gold hasn’t budged for nearly two weeks.

Daily Forecast

Gold traders seemed unfazed by Brexit and central bank easing. This likely means they are more concerned about U.S.-China trade relations. Prices are likely to remain rangebound until there is a major breakthrough in the negotiations between the two economic powerhouses.

Most investors are leaning toward a trade deal announcement that will be signed at an economic conference in Chile in November. They also agree that when it is signed isn’t as important as to what is in the deal.