Gold Fundamental Analysis – Forecast for the week of June 27, 2016

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Published: Jun 25, 2016, 05:16 UTC

Gold closed the week at 1318.50 after soaring over $100 as the vote to Leave the Eurozone. The commodity gained 4.39% for the day while the metal saw a

Gold Fundamental Analysis – Forecast for the week of June 27, 2016

Gold closed the week at 1318.50 after soaring over $100 as the vote to Leave the Eurozone. The commodity gained 4.39% for the day while the metal saw a gain of 2% on the week. The price of gold soared to levels not seen in the last two years after UK voted to leave the EU in yesterday’s referendum on Friday

The results, which came through at around 6am UK time, went against market expectations as the Leave campaign secured nearly 52% of the total vote.

The price of gold had been waning over the last weeks with polls suggesting that a vote to remain was very likely.

As the results began to come in from around the country, shocked investors and traders quickly rushed to pile their investments into gold, which is often seen as a ‘safe haven’ in times of economic uncertainty.

Gold will also benefit from the fact that the Fed is now likely to hold off on any interest rate hikes for the foreseeable future in light of today’s news.

“This is just the kind of crisis which gold helps savers and investors insure against,” said Adrian Ash, head of research at BullionVault.

“Gold offers certainty and security as stock markets and currencies sink, just as it did during the 2008 meltdown.”

“The difference is that this shock was clearly signposted, and many private investors didn’t wait for today’s result to get prepared,” he added.

Ash said that BullionVault, the largest online silver and gold market, has been used to trade £18.2mln of physical gold and silver over the last seven days.

In a five-hour stretch from Thursday night and into Friday morning alone, customers traded a further £6.5mln in some 1,500 deals. (Proactive)

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 recent analysis and information in our weekly reports and we provide daily updates and outlooks.

Major Economic Events for the week:


	Cur.		Event	Actual	Forecast	Previous
Tuesday, June 28, 2016
		USD	GDP (QoQ) (Q1)		1.0%	0.8%
		USD	CB Consumer Confidence (Jun)		93.3	92.6
Wednesday, June 29, 2016
		USD	Pending Home Sales (MoM) (May)		-1.1%	5.1%
		USD	Crude Oil Inventories			-0.917M
Thursday, June 30, 2016
		GBP	GDP (QoQ) (Q1)		0.4%	0.4%
		GBP	GDP (YoY) (Q1)		2.0%	2.0%
		EUR	CPI (YoY) (Jun)			-0.1%
		CAD	GDP (MoM) (Apr)		0.1%	-0.2%
Friday, July 1, 2016
			Canada – Canada Day
		JPY	Tankan Large Manufacturers Index (Q2)		4	6
		JPY	Tankan Large Non-Manufacturers Index		19	22
		CNY	Manufacturing PMI (Jun)		50.0	50.1
		CNY	Caixin Manufacturing PMI (Jun)		49.2	49.2
		GBP	Manufacturing PMI (Jun)		50.2	50.1
		USD	ISM Manufacturing PMI (Jun)		51.5	51.3