Gold Fundamental Forecast – February 4, 2016

Analysis and Recommendations:

Gold futures spent most of session slightly below its 3-month high as investors assessed the price action in the U.S. Dollar, crude oil and European equity markets. Investors seeking so-called safer assets ventured into gold, underpinning the market.

Spot gold was at $1128.10 an ounce, little changed from $1128.70 late Tuesday and within sight of yesterday’s peak of $1130.30, its strongest since November 3.

Demand for gold is growing as evidenced by the money flow into the world’s largest gold-backed exchange-traded fund (ETF). The latest available data shows that since November, holdings of the SPDR Gold Trust has climbed to their highest at 22.04 million ounces as of Tuesday.

Gold is currently being supported by a weaker growth outlook in China, crude oil trading a multi-year lows and the possibility the Fed will curtail the pace of its planned interest rate hikes in 2016.

Hedgers may be coming in today to keep a limit on gains, but the majority of traders may be on the sidelines ahead of Friday’s U.S. Non-Farm Payrolls report.

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:

Thursday, February 4, 2016

 Government Bond Auctions

Date Time and Country

Feb 03 11:03 Sweden Holds bond auction

Feb 03 11:30 Germany EUR 5bn Apr 2021 Bobl

Feb 03 n/a Netherlands Details of DSL auction on Feb 09

Feb 03 n/a US Details of 3 & 10-yr notes on Feb 09/10

Feb 03 n/a US Details of 30-year bond auction on Feb 11

Feb 04 11:50 France Holds bond auction

Feb 04 17:20 Sweden Details of I/L bond auction on Feb 11