Price of Gold Fundamental Daily Forecast – Strong Aggressive Buyers Take Out Weak Complacent Sellers

Gold futures are trading higher on Friday and in a position to change the trend to up on the daily chart as buyers continued to come in on the dips, while defending the recent main bottom at $1821.30 and the major main bottom at $1771.30.

The move is taking place despite a steady to better U.S. Dollar, rising U.S. Treasury yields and lower demand for risky assets.

At 13:50 GMT, April Comex gold is trading $1876.20, up $35.00 or +1.90%.

In other words, it’s not following the traditional fundamentals, which is probably frustrating the bearish traders. It’s interesting that investors are taking on the conventional traders (otherwise known as the Dollar Up, Rates Up, Gold Down Guys). Interesting but not unexpected given the situation on Wall Street where small speculators are banding together to battle the large hedge funds.

I’m not saying that’s what’s driving gold prices higher on Friday, but it’s not out of the realm of possibilities. Trading groups from around the world and even hedge funds often ban together to try to move a market, especially one that can get dull and lifeless at times like gold.

The hedge funds get a lot of publicity for generating huge returns for their investors, but they do lose too. Hedge funds also get a lot of credit for being smart traders too, but sometimes that’s not the case. Sometimes they just follow each other in what I call Herd Theory trading. In that case, they move a market because they have a lot of money moving in the same direction.

In the absence of any major news on Friday, let’s just say that someone or entity with strong financial backing came in and took out all the weak offers, hoping for a breakout to the upside.

They could get it too. If the buying is strong enough, we could see a breakout over $1878.10 and into $1894.10 to $1911.20.