Analysis and Recommendations: Gold recovered some of its morning losses but remains in the red at 1054.70 down $1.50 for the session as the US dollar
Gold recovered some of its morning losses but remains in the red at 1054.70 down $1.50 for the session as the US dollar continues to rally. The greenback is p 25 points at 100.31 coming near the top of its range. Strength in US dollar hurt the Gold prices and the metal dropped yet again near six year lows. The counter was supported earlier on strong demand for Gold coins in the US and bargain buying. Geopolitical tensions also escalated after Turkey shot down a Russian ground attack aircraft, adding another layer of worry in a region that is already grappling with massive wave of terrorist attacks. However, the US dollar has gained sharply on ideas that the ECB would resort to further monetary easing in the near term. Dollar lingered near its multi month high of 1.0600 against the Euro. COMEX Gold futures failed to hold onto a feeble rally above $1070 per ounce and tumbled under $1060 per ounce levels in thin trades following the Thanksgiving Day holidays in the US. Gold extended losses on Monday, dropping towards its lowest level in nearly six years, and was poised to record its steepest monthly slide in 2½ years on prospects of a US interest rate hike this year.
The precious metal has fallen out of favor as investors position themselves for the first US rate hike in nearly a decade. The Federal Reserve is expected to raise rates at its next policy meeting on Dec 15-16.
Investors believe gold, as a non-interest-paying asset, will take a hit to demand from higher rates as the dollar gains. Assets in SPDR Gold Trust, the world’s top gold-backed exchange-traded fund, fell to their lowest since September 2008 on Friday. The strength in the dollar also kept a lid on any increase in gold prices.
FxEmpire provides in-depth analysis for each currency and commodity we review. Fundamental analysis is provided in three components. We provide a detailed monthly analysis and forecast at the beginning of each month. Then we provide more up to the data analysis and information in our weekly reports.
Today’s economic releases:
Cur. |
Event |
Actual |
Forecast |
Previous |
|||
NZD |
ANZ Business Confidence (Nov) |
14.6 |
15.0 |
10.5 |
|
||
AUD |
Company Gross Operating Profits |
1.3% |
1.0% |
-0.5% |
|||
AUD |
Private Sector Credit (MoM) (Oct) |
0.7% |
0.6% |
0.8% |
|
||
JPY |
BoJ Governor Kuroda Speaks |
|
|
|
|
||
EUR |
German Retail Sales (MoM) (Oct) |
-0.4% |
0.4% |
0.0% |
|
||
EUR |
German CPI (MoM) (Nov) |
|
0.1% |
0.0% |
Upcoming Economic Events that you should be monitoring:
Tuesday, December 1, 2015
Cur. |
Event |
Actual |
Forecast |
Previous |
|||
AUD |
AIG Manufacturing Index (Nov) |
|
|
50.2 |
|
||
JPY |
Capital Spending (YoY) (Q3) |
|
|
5.6% |
|
||
AUD |
Building Approvals (MoM) (Oct) |
|
-2.3% |
2.2% |
|
||
AUD |
Current Account (Q3) |
|
-16.5B |
-19.0B |
|
||
CNY |
Manufacturing PMI (Nov) |
|
49.8 |
49.8 |
|
||
CNY |
Non-Manufacturing PMI (Nov) |
|
|
53.1 |
|
||
CNY |
Caixin Manufacturing PMI (Nov) |
|
48.3 |
48.3 |
|
||
AUD |
Interest Rate Decision (Dec) |
|
2.00% |
2.00% |
|
||
EUR |
German Manufacturing PMI (Nov) |
|
52.6 |
52.6 |
|
||
EUR |
German Unemployment Change |
|
-5K |
-5K |
|
||
EUR |
German Unemployment Rate (Nov) |
|
6.4% |
6.4% |
|
||
EUR |
Manufacturing PMI (Nov) |
|
52.8 |
52.8 |
|
||
GBP |
Manufacturing PMI (Nov) |
|
54.0 |
55.5 |
|
||
EUR |
Unemployment Rate (Oct) |
|
10.8% |
10.8% |
|
||
USD |
Manufacturing PMI (Nov) |
|
|
52.6 |
|
||
USD |
ISM Manufacturing Employment |
|
48.5 |
47.6 |
|
||
USD |
ISM Manufacturing PMI (Nov) |
|
50.4 |
50.1 |
|
Government Bond Auctions
Date Time Country
Dec 02 11:30 UK Gbp 3.75bn 1.5% Jan 2021 Gilt
Dec 02 16:30 Sweden Announces details of Bond on 11 Dec
Dec 03 10:30 Spain 1.15% Jul 2020 Bono
Dec 03 10:50 France
Dec 03 11:03 Sweden Sek 0.7bn 1%
Dec 07 13:00 Norway Details bond auction on 09 Dec
Dec 07 17:30 Italy Announces details of BTP/CCTeu on 11 Dec
Dec 08 11:30 UK 3.5% 2045 Gilt auction
Dec 08 19:00 US Holds 3-year note auction
Dec 09 11:03 Sweden Holds bond auction
Dec 09 11:05 Norway Holds bond auction
Dec 09 11:30 Germany Eur 3bn Dec 2017 Schatz
Dec 09 19:00 US Holds 10-year note auction
Dec 10 19:00 US Holds 30-year bond auction
Dec 11 11:10 Italy Auctions BTPs/CCTeus