Price of Gold Fundamental Daily Forecast – Underpinned by Weaker US Dollar, Capped by Firmer Yields

Price of Gold Fundamental Daily Forecast – Underpinned by Weaker US Dollar, Capped by Firmer Yields

Gold futures are inching higher on Tuesday after an earlier rally to a new multi-month high fizzled due to the lack of buyers. The move was offset by an uptick in the U.S. Dollar against a basket of currencies after a weaker opening. Treasury yields are also firming after touching a two-week low last week. The price action suggests trader indecision as players await the next catalyst.

At 12:28 GMT, August Comex gold is trading $1913.10, up $7.80 or +0.42%.

Gold posted its biggest monthly jump in May since July 2020, as the U.S. Dollar headed for a second month of decline and U.S. Treasury yields retreated from highs set earlier in the year on inflation concerns.