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Gold Fundamental Analysis – week of August 29, 2016 – Forecast

By:
Barry Norman
Published: Aug 27, 2016, 05:30 UTC

Gold took a hit after Stanley Fischer spoke after Janet Yellen and indicated that the Fed is considering two rate increases this year. Gold reversed

gold weekly bns

Gold took a hit after Stanley Fischer spoke after Janet Yellen and indicated that the Fed is considering two rate increases this year. Gold reversed course and lost 1.15% for the week to trade at 1324.95 but remains within its trading range. The dollar rallied, then plunged, and rebounded against other major currencies an hour later as traders worked through the implications of Federal Reserve Chair Janet Yellen’s speech in Jackson Hole, Wyoming. Yellen said the performance of the U.S. economy and the outlook for inflation are giving the central bank more scope to raise interest rates, yet at the same time said monetary tightening will be gradual. Fed Vice Chairman Stanley Fischer shed more light later, saying a rate increase in September is possible.

Gold rose as much as 1.6 percent after Yellen said that while the case for a rate hike has strengthened recently, a gradual increase will be appropriate “over time,” initially easing concerns that the Fed would make a move next month. The gains were all but erased after Fed Vice Chairman Stanley Fischer said her remarks leave open the possibility of boosting rates in September. The odds of an interest rate increase in September climbed to 40 percent, from 32 percent on Thursday, according to Fed funds data.

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Upcoming Economic Events that you should be monitoring:

Week beginning August 29, 2016

Date Country Name Volatility Previous Consensus
8/31/2016 EUR Unemployment Rate 3 6.1 6.1
8/31/2016 EUR Unemployment Change 3 -7 -4
8/31/2016 EUR Consumer Price Index – Core 3 0.9
8/31/2016 EUR Consumer Price Index (YoY) 3 0.2 0.3
9/1/2016 USD ISM Manufacturing PMI 3 52.6 52.4
9/1/2016 USD ISM Prices Paid 3 55
9/2/2016 USD Unemployment Rate 3 4.9 4.8
9/2/2016 USD Nonfarm Payrolls 3 255 164

Government Bond Auctions

Date Time Country Auction

Aug 26 11:10 Italy Holds zero coupon/BTP€i auction

Aug 29 13:00 Norway Details of bond auction on Aug 31

Aug 30 11:10 Italy Holds bond auction

Aug 31 11:05 Norway Holds bond auction

Aug 31 11:30 Germany Eur 4bn Sep 2018 Schatz

Sep 01 10:30 Spain Holds bond auction

Sep 01 11:30 UK Jul 2022 Gilt

Sep 01 11:50 France Holds bond auction

 

 

 

 

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