Market decline

Gold Price Fundamental Daily Forecast

Gold futures are trading higher on Friday, putting the market in a position to rally for the week. This follows last week’s sharp decline, which was the worst weekly performance in about two months. Prices are rising despite renewed optimism about global economic growth, following the signing of the first phase of the trade agreement between the United States and China.

As of 13:14 GMT, February Comex Gold is trading at $1569.60, up $10.20 or +0.66%. Last week the market stabilized at $1560.10.

In another surprise, gold continued to strengthen even after global stock markets hit record highs after data showed China’s economy was stabilizing and the world’s second-largest economy ended 2019 on a high. a little firmer as the trade truce revived business confidence.

In economic news, a higher contribution from energy costs boosted eurozone inflation in December, data showed on Friday, as the EU’s statistics office confirmed its earlier estimate. that consumer prices rose 1.3% year-on-year in the last month of 2019.

Eurostat also confirmed its earlier estimate that monthly prices in the 19 countries sharing the euro rose by 0.3%.

Daily forecast

On Friday, traders will have the opportunity to react to the latest data on US building permits and preliminary consumer sentiment from the University of Michigan.

Minor reports include Housing Starts, Capacity Utilization, Industrial Production, and JOLTS Job Openings.

FOMC members Harker and Quarles are also expected to speak. Harker’s speech could be a market mover.

The price action suggests that gold traders are once again betting on a strong breakout in the stock market. They think stocks are overvalued and are preparing for a huge drop.

Additionally, comments by Iran’s Supreme Leader Ayatollah Ali Khamenei also remind traders of the instability in the Middle East that could erupt at any moment. On Friday, the Ayatollah called President Trump a “clown” who merely pretends to support Iranian citizens but would shove a “poisoned dagger” into their backs.

He also described Tehran’s decision to attack military bases housing US troops in Iraq earlier this month as a “day of God”.