Price of Gold Fundamental Daily Forecast – Rising Dollar Forcing Investors to Shed Speculative Gold Positions

Gold prices are under pressure for a third day on Tuesday as a strengthening U.S. Dollar continues to exert pressure on the precious metal.

At 1140 GMT, April Comex Gold is trading $1341.00, down $7.90 or -0.58%.

Gold is currently trading at its lowest level since February 14 as the dollar shows signs of a rebound as some investors took profits and covered shorts after last week’s declines.

Forecast

Although Treasury yields hit four-year highs last week, gold traders chose to ignore this event, choosing instead to focus on concern over rising inflation and worries that a rising fiscal deficit in the United States could disrupt the economy.

This week, it appears gold investors are tracking the number of potential rate hikes by the Fed in 2018. Their primary concerns are how fast the central bank will lift rates and how many times they will raise rates.

Investors may also be shedding long gold positions ahead of Wednesday’s U.S. Federal Reserve meeting minutes. On January 30 to January 31, the Federal Reserve Open Market Committee held a meeting during the steep sell-off in equity markets.

Traders will be monitoring the Fed minutes for member response to the wild stock market gyrations, its outlook for inflation and its opinion on the frequency and number of rate hikes.

Hawkish Fed minutes are likely to put pressure on gold prices.