Gold Fundamental Analysis – December 9, 2015 -Forecast

Analysis and Recommendations:

Gold is down almost $3 at 1072.50 as traders seem uncertain as to what to do at present as most investors are sidelined ahead of the Fed. Gold was little changed at $1,071.52 an ounce by 0009 GMT. It fell as much as 1.6 per cent on Monday to hit a session low of $1,069.66. Friday’s strong US nonfarm payrolls data supported widely held market views that the Fed would hike interest rates for the first time in nearly a decade later this month. Gold gained 2.3 per cent on Friday on short-covering immediately after the data, but with the focus back on the rate rise next week, investors sold off the metal on Monday.

The dollar extended gains against a basket of major currencies on Monday, helped by the jobs data and the looming rate hike, further weighing on bullion. Higher rates tend to drag on non-interest-paying gold by increasing the opportunity cost of holding it, while boosting the dollar.

Investor sentiment has been downbeat. Assets in SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, tumbled 0.65 per cent to 634.63 tonnes on Monday, the lowest since September 2008. Elsewhere, China likely added nearly 21 tonnes of gold to its reserves in November, according to Reuters calculations from central bank data on Monday.

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:

 

Upcoming Economic Events that you should be monitoring:

Wednesday, December 9, 2015

Government Bond Auctions

Date Time Country

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

Dec 15 11:15 Austria Holds RAGB bond sale

Dec 17 10:30 Spain Auctions Bonos/Obligaciones