Price of Gold Fundamental Daily Forecast – Steady Market While Traders Await Next Catalyst

Gold futures are inching lower while posting a mostly mixed performance for the fifth straight session as traders continue to assess the movement in the U.S. Dollar and Treasury yields. The firm dollar is reducing foreign demand for dollar-denominated gold, while mostly lower yields this week is providing some support.

At 11:19 GMT, June Comex gold is trading $1734.20, down $1.30 or -0.07%.

The U.S. Dollar hit its highest level against a basket of currencies since November 23 earlier in the session, helping to put a lid on gold prices. The move was mostly fueled by a weaker Euro which fell to a four-month low against the dollar during the Asian session. The catalyst behind the move was divergent recovery outlooks for the United States and Europe.

Concerns about extended lockdowns in Europe also weighed on markets. German Chancellor Angela Merkel’s decision to ditch plans for a lockdown over Easter did little to improve sentiment.

Meanwhile, U.S. Treasury yields climbed on Thursday morning, following Federal Reserve Chairman Jerome Powell’s second testimony in Congress, alongside Treasury Secretary Janet Yellen.

Powell told the Senate Committee on Banking, Housing and Urban Affairs on Wednesday that 2021 was “going to be a very, very strong year in the most likely case.”

“There are of course risks to the upside and downside, but it should be a very strong year from a growth standpoint…Longer run we do have to raise revenue to support permanent spending that we want to do,” he added.

Daily Forecast

At 12:30 GMT, gold traders will have the opportunity to react to the latest weekly jobless claims report. The Labor Department is expected to report that 735,000 Americans filed for unemployment insurance last week, according to forecasts.

Final GDP is also expected to be released. It is expected to show a gain of 4.1%. This is old data so we don’t expect much of a reaction.

Several Fed members are also scheduled to speak. We don’t expect any surprises there. They are likely to say the economy has a long way before full recovery.

For a look at all of today’s economic events, check out our economic calendar.