Gold prices are trading weaker early Monday and in a position to challenge last week's one-month lows as investors react to a firmer U.S. Dollar and reduced concerns over a possible North Korean test of a hydrogen bomb in the Pacific Ocean.
At 0600 GMT, December Comex Gold is trading $1296.20, down $1.40 or -0.11%.
Gold was pressured on the opening after U.S. Dollar Index futures gapped higher in response to a weaker Euro. The single-currency retreated in early Asian trading on Monday after Germany's election showed surging support for a far-right party that is going to force Chancellor Angela Merkel to form a governing coalition.
The Japanese Yen also weakened against the dollar helped by renewed hope for Prime Minister Shinzo Abe's economic stimulus as he is expected to announce a snap election, to be held on October 22.
Gold dropped $27.70 or -2.09% last week in reaction to a hawkish U.S. Federal Reserve meeting. The Fed announced its plan to begin reducing its $4.5 trillion balance sheet and also left open a possible third interest rate hike in December.
Forecast
Concerns over the election results in New Zealand and Germany are likely to continue to support the U.S. Dollar throughout the week which could put pressure on gold prices .
Gold is also likely to continue to feel pressure from rising U.S. Treasury yields in response to the Fed's hawkish tone.
Later today, investors will get the opportunity to react to several Fed speakers including FOMC Members William Dudley, Charles Evans, and Neel Kashkari. Their speeches could cause volatility in the market especially if they talk about monetary policy and the timing of the next rate hike.
Despite the bearish tone in the market, prices could turn higher quickly on geopolitical concerns over North Korea.
The market is coming close to the August 25 bottom at $1281.30. We could see a technical bounce on the first test of this level and an acceleration to the downside if this level is taken out with heavy selling volume.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
At 0600 GMT, December Comex Gold is trading $1296.20, down $1.40 or -0.11%.
Gold was pressured on the opening after U.S. Dollar Index futures gapped higher in response to a weaker Euro. The single-currency retreated in early Asian trading on Monday after Germany's election showed surging support for a far-right party that is going to force Chancellor Angela Merkel to form a governing coalition.
The Japanese Yen also weakened against the dollar helped by renewed hope for Prime Minister Shinzo Abe's economic stimulus as he is expected to announce a snap election, to be held on October 22.
Gold dropped $27.70 or -2.09% last week in reaction to a hawkish U.S. Federal Reserve meeting. The Fed announced its plan to begin reducing its $4.5 trillion balance sheet and also left open a possible third interest rate hike in December.
Forecast
Concerns over the election results in New Zealand and Germany are likely to continue to support the U.S. Dollar throughout the week which could put pressure on gold prices .
Gold is also likely to continue to feel pressure from rising U.S. Treasury yields in response to the Fed's hawkish tone.
Later today, investors will get the opportunity to react to several Fed speakers including FOMC Members William Dudley, Charles Evans, and Neel Kashkari. Their speeches could cause volatility in the market especially if they talk about monetary policy and the timing of the next rate hike.
Despite the bearish tone in the market, prices could turn higher quickly on geopolitical concerns over North Korea.
The market is coming close to the August 25 bottom at $1281.30. We could see a technical bounce on the first test of this level and an acceleration to the downside if this level is taken out with heavy selling volume.
,
Natural Gas Price Fundamental Daily Forecast - Traders Looking for Increased Demand This Week
,
Commodities Technical Analysis, September 25th - September 29th, 2017
,
Natural Gas Price Fundamental Weekly Forecast - Bullish Over $3.050, Bearish Under $3.011
,
Natural Gas forecast for the week of September 25, 2017, Technical Analysis
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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