Price of Gold Fundamental Weekly Forecast – Held Rangebound as Stimulus Talks Hit a Wall

Price of Gold Fundamental Weekly Forecast – Held Rangebound as Stimulus Talks Hit a Wall

Gold futures finished marginally lower and consolidated in a tight range for a third week with investors held hostage by the lack of movement toward a fresh government fiscal stimulus plan. The price action was choppy with gold rising along with hopes for a deal falling when those hopes were dashed.

It wasn’t the actual stimulus headlines that drove the price action, but what they did to the U.S. Dollar. When stimulus was on the dollar weakened, driving up foreign demand for the dollar-denominated commodity. When both sides nearly walked away from negotiations, the greenback rose, pressuring gold prices.

Last week, December Comex gold settled at $1905.20, down $1.20 or -0.6%.

Gold is viewed as a hedge against inflation and currency debasement spurred by stimulus measures. Stimulus Update It doesn’t make sense to retrace the stimulus headlines from last week. All one has to know is that they changed nearly every day […]

About the author: StockMan

Please remember:

The information provided here is for general knowledge and educational purposes only.
It is not intended to be a substitute for professional financial advice.
Every individual's financial situation is unique, and what works for one person may not work for another.
Before making any investment or financial decisions, you should always consult with a qualified financial advisor who understands your specific circumstances and goals.

Any information posted on the website has been prepared without taking into account your objectives, financial situation or needs and as such, should never be acted upon. Please be aware that any information posted on this site should not be considered to be financial advice and i am not a financial advisor.

Posting Guidelines
  • Do contribute something to the discussion
  • Do post factual information, analysis and your view on company valuations
  • Do disclose if you have an interest in a security
  • Do take our Terms of Use seriously
Do Not
  • Do not make low-content posts, unsubstantiated ramps or untruthful/misleading statements
  • Do not complain about a post unless you have reported it first, and not on the forum.
  • Do not post financial advice
  • Do not advertise or post sponsored content

Get involved!

Get Connected!

Come and join our community. Expand your network and get to know new people!


No comments yet