Gold Fundamental Analysis – December 10, 2015 – Forecast

By:

Updated: Dec 9, 2015, 14:38 UTC

Analysis and Recommendations: Gold held to early gains to trade at 1078.10 today. There was little in the way of market news and events after Chinese data

Gold Fundamental Analysis – December 10, 2015 – Forecast

Analysis and Recommendations:

Gold held to early gains to trade at 1078.10 today. There was little in the way of market news and events after Chinese data this morning. old ETPs experienced major outflows to the tune of $58.6m last week. The ETFS Gold ETP ended the week down 0.8% but made significant gains during Friday trading on the back of underwhelming policy moves by the European Central Bank (ECB), a depreciating dollar, and a strong US payroll report which increased expectations for a rate hike by the Federal Reserve in December. The day’s rally highlights that further movements in the price of the yellow metal may be possible in the lead up to the Federal Open Market Committee meeting on 16 December.

Gold rose as the dollar receded slightly and stocks fell globally, though expectations that the U.S. Federal Reserve will raise interest rates next week kept gains in check.

A slide in commodity prices – particularly crude oil’s drop to its lowest in almost seven years as OPEC continues to pump near-record amounts of oil to defend market share – also prevented gold from reaching higher levels.

Any further weakness in oil could trigger fears of deflation, a bearish factor for gold, which is often used as a hedge against oil-led inflation.

FxEmpire provides in-depth analysis for each asset 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, which covers the current week and are published by Sunday before the new week begins. Daily we share any new events, forecasts or analysis that affect the current day. To achieve a full accurate understanding it is important that you study all of our data and analysis as a whole.

Today’s economic releases:

Cur.	Event	Actual	Forecast	Previous
USD	API Weekly Crude Oil Stock	-1.900M	-1.200M	1.600M
AUD	Westpac Consumer Sentiment	-0.8%		3.9%
AUD	Home Loans (MoM) (Oct)	-0.5%	-1.0%	2.0%
CNY	CPI (MoM) (Nov)	0.0%	-0.1%	-0.3%
CNY	CPI (YoY) (Nov)	1.5%	1.4%	1.3%
CNY	PPI (YoY) (Nov)	-5.9%	-5.9%	-5.9%
EUR	German Trade Balance (Oct)		20.0B	19.4B
USD	Crude Oil Inventories		0.252M	1.177M

Upcoming Economic Events that you should be monitoring:

Thursday, December 10, 2015

Cur.	Event	Actual	Forecast	Previous
NZD	Interest Rate Decision		2.50%	2.75%
NZD	RBNZ Gov. Wheeler Speaks
JPY	BSI Manufacturing Conditions (Q4)		12.1	11.0
AUD	Employment Change (Nov)		-10.0K	58.6K
AUD	Unemployment Rate (Nov)		6.0%	5.9%
GBP	Trade Balance (Oct)		-9.70B	-9.35B
GBP	Trade Balance Non-EU (Oct)		-2.50B	-2.08B
GBP	Interest Rate Decision (Dec)		0.50%	0.50%
USD	Export Price Index (MoM) (Nov)		-0.3%	-0.2%
USD	Import Price Index (MoM) (Nov)		-0.7%	-0.5%
USD	Initial Jobless Claims		269K	269K
CAD	New Housing Price Index (MoM) (Oct)		0.1%	0.1%
GBP	BoE Gov. Carney Speaks
EUR	German Buba President Weidmann
USD	Federal Budget Balance (Nov)		-68.0B	-136.0B