Yahoo Finance Price of Gold Fundamental Daily Forecast – Just Enough Concern Over Trade Deal to Underpin Prices
Gold futures are edging higher on Tuesday amid concerns over U.S.-China trade relations. Lower U.S. Treasury yields are helping to underpin prices, while gains are being capped by increased demand for risky assets and a firmer U.S. Dollar. Traders are also attributing the early strength to dampened hopes of a prolonged trade deal between the United States and China, and ahead of a summit that will determine how Britain leaves the European Union.
At 12:21, December Comex gold is trading $1497.90, up 0.30 or +0.035.
The lukewarm response to phase one of the trade deal continues to encourage gold bulls to hang on to their long positions. However, this isn’t really bullish news either. It seems to be just enough to prevent the market from collapsing like it did last week.
At the same time, the fact that the two sides keep talking is helping to keep a lid on prices with some saying the threat of a more permanent deal being signed at any time over the next few weeks is enough to keep even the strongest bulls from adding to their long positions.
The Brexit narrative is also playing with investor sentiment ahead of the make-or-break summit between Britain and the European Union on Thursday and Friday that will determine whether Britain is headed for a deal to leave the bloc on October 31, a disorderly no-deal exit or a delay.
Daily Forecast
There are no major economic releases in the United States on Tuesday, but it is the start of earnings season on Wall Street. Although most analysts are forecasting a weak earnings season, today’s session started with a bang with a number of major companies posting big earnings beats.
Stronger-than-expected reports could help boost stock prices, which could put some pressure on demand for gold.
Traders are also monitoring the situation in the Middle East after the U.S. decided to stop trade negotiations with Turkey and raised steel prices to 50%. Gold could find support if the situation escalates in the area.
This article was originally posted on FX Empire
