Price of Gold Fundamental Daily Forecast – Light Pressure as Traders Shrug-Off Negative Trade Deal “Noise”

London (Nov 21)  Gold futures are trading slightly lower on Thursday after clawing back earlier losses. The price action is basically being controlled by the headlines today as investors try to make sense of the latest developments over U.S.-China trade relations.

Prices are being supported by one headline saying a trade deal could be delayed until early next year. Another headline says trade negotiations have hit a snag because the U.S. refuses to agree to rollback tariffs. Still another says President Trump’s signing of two bills that back protesters in Hong Kong, could drive China away from the negotiation table.

At 09:17 GMT, December Comex Gold futures are trading $1471.60, down $2.60 or -0.18%.

Gold prices are being capped after China’s top negotiator reportedly expressed optimism in sealing a deal.

Bloomberg reported mid-morning that Chinese Vice Premier Liu He said he was “cautiously optimistic” in reaching a “phase one” deal, but added that he was “confused” about U.S. demands.

Traders Expecting Heightened Volatility

Some traders are calling the negative headlines “noise”, further saying that traders are basically following the news on the trade war, and having a hard time predicting when we will have good news or bad news.

This creates uncertainty and investors tend to leave risky assets when there is uncertainty and seek protection in traditional safe-haven Treasurys and Japanese Yen, with some moving money into the so-called safe-haven gold market.

One trader basically said to continue to expect volatility and the possibility of a two-sided trade because, “Market sentiment may change but the fundamentals of the negotiations have not. There have always been unresolved issues in these talks,” he said. “There is not a lot of willingness in the market to bet on one direction or another.”

FXempire