Gold Fundamental Forecast – February 5, 2016

Analysis and Recommendations:

Gold added another $5 today to trade at its highest level in months. Gold is at 1146.80 facing strong resistance at $1150. Precious metals rallied with gold and silver futures each closing at about three-month highs.

“There’s been a confluence of factors supporting gold, one of which is the change in sentiment about how the Fed will proceed,” Bloomberg News quoted Fiona Boal, a London-based director of commodity research at Fulcrum Asset Management. “On top of that, the rout we’ve seen in equity markets and in other commodities has made people nervous about the state of the global economy, with a greater allocation placed in gold.”

Gold prices rose to their highest level in more than three months spurred higher by a weaker dollar and expectations that the Federal Reserve will hold off from raising interest rates in coming months.

The overall sentiment for gold still seems bullish as the global tumult is playing its game. Gold may, however, face some resistance at $1,130, the high it saw on Monday, February 1. The Fed may also get even weaker in the knees with a global scenario that is shooting southward and promises to hamper growth across the US economy, and this appears to explain the Fed’s most recent decision to postpone another rate hike and give further breathing room to gold.

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:

Friday, February 5, 2016

Government Bond Auctions

Date Time and Country

Feb 04 11:50 France Holds bond auction

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

Feb 08 16:20 Italy Details of bond auction

Feb 09 11:00 Netherlands Holds DSL auction

Feb 09 11:00 Austria Holds bond auction

Feb 09 11:30 Germany Holds I/L bond auction

Feb 09 11:30 UK 0.125% 2026 Gilt linker auction

Feb 09 n/a UK Details of Gilt auction on Feb 17

Feb 09 19:00 US Holds 3-year note auction

Feb 10 11:30 Germany Euro 5bn Mar 2018 Schatz

Feb 10 17:20 Sweden Details of bond auction on Feb 17

Feb 10 19:00 US Holds 10-year note auction

Feb 11 N/A Italy Euro 4-5bn 30-yr syndicated bond auction

Feb 11 11:03 Sweden Holds I/L bond auction

Feb 11 11:10 Italy Announces details of bond auction

Feb 11 11:30 UK 3.5% 2045 Gilt auction

Feb 11 19:00 US Holds 30-year bond auction

Feb 11 n/a US Details of 30-yr TIPS auction on Feb 18

Feb 12 11:10 France Details of bond auction on 18 Feb