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Gold Fundamental Forecast – February 8, 2016

By:
Barry Norman
Published: Feb 5, 2016, 12:54 UTC

Analysis and Recommendations: Gold added $2 to 1159.60 holding near its high this week of 1161.00 as traders remain stressed and the ongoing talk of

Gold Fundamental Forecast – February 8, 2016

gold friday bns
Analysis and Recommendations:

Gold added $2 to 1159.60 holding near its high this week of 1161.00 as traders remain stressed and the ongoing talk of negative interest rates turn low inflation into higher inflation increasing the demand for low yielding gold.  Analysts said participants strengthened their positions, tracking a firming global trend where gold held near the highest level since October after waning bets on US interest rate rise weakened the dollar, mainly influenced gold prices.

gold edged up to a three-month high, a day after its best day in two weeks, buoyed by expectations that global economic and financial headwinds could make it tough for the US Federal Reserve to raise rates in the near term.

Gold futures prices at New York Mercantile Exchange jumped to their highest since late October having outperformed most metals in 2016 on mixed economic data which kept investors on edge, while falling stocks and oil prices generated demand for safe haven assets.

Gold found support from increased concerns about the economic outlook after the weaker-than-expected ISM data showed a slowdown in the services sector in January this would suggest the Fed “will be more likely to put interest rates on hold.”

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:

Cur.   Event Actual Forecast Previous
  AUD Retail Sales (MoM) (Dec)   0.5% 0.4%  
  USD Nonfarm Payrolls (Jan)   190K 292K  
  USD Unemployment Rate (Jan)   5.0% 5.0%  
  CAD Employment Change (Jan)   5.5K 22.8K  
  CAD Ivey PMI (Jan)   50.0 49.9

 

gold

Upcoming Economic Events that you should be monitoring:

Monday, February 8, 2016

Event        
  Holiday New Zealand – Waitangi (Observed)
  Holiday China – Lunar New Year

Government Bond Auctions

Date Time and Country

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

 

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