U.S. Dollar Lower in Rangebound Forex Trading

The U.S. dollar is lower in rangebound forex trading this morning as investors look to the week ahead with some optimism. The Santa Claus rally is expected to help U.S. stocks, and futures are already pointing to a higher open.

Additionally, forex traders are looking to lock in a few gains, and major currencies are up against the greenback. The euro and the pound are both higher in currency trading on the FX market, and even the yen is up slightly against the greenback.

However, big moves are not expected in any market this week, with things likely to be rather staid for the most part.

Gold Prices Flat Today

Normally, gold prices move inversely to the U.S. dollar, heading higher as the greenback moves lower in forex trading. However, this has not been the case this morning. Gold prices have been relatively flat, and even though the U.S. dollar is showing weakness in currency trading, gold remains down.

And it doesn't look as though is seriously going to get a real boost anytime soon. FX Street looks at the forecast for gold prices:

"In terms of technical trends, the prospects for gold look strong, but the underlying fundamentals look weak," says a note from Barclays Capital in London, pointing to a third year of falling jewelry demand in the face of record-high gold prices.

The conditions to see a gold rally are fairly good, with inflation expected and U.S. dollar weakness almost guaranteed. However, it isn't happening. Gold still appears to be correcting from its recent record highs.