Gold Fundamental Forecast – June 9, 2016

August Comex Gold futures are trading higher shortly before the regular session opening, finishing at $1256.20, up $9.20 or +0.74%. The market is being underpinned as the prospect of an early U.S. interest rate hike dimmed following dovish comments by Federal Reserve Chair Janet Yellen on Monday.

Traders continued to monitor the economy for strength that could raise the chances of a rate hike in July, but had difficulty finding any. On Tuesday, it was reported that U.S. non-farm productivity fell less sharply than initially thought in the first quarter and labor-related costs surged for a second straight quarter as companies hired more workers to raise output, suggesting profits could remain under pressure.

The World Bank slashed its 2016 global growth forecast on Wednesday to 2.4 percent from the 2.9 percent estimated in January due to stubbornly low commodity prices, sluggish demand in advanced economies, weak trade and diminishing capital flows.

China’s gold reserves were unchanged, at 58.14 million fine troy ounces at the end of May, from the end of April, the central bank reported on Tuesday.

July Nymex Platinum futures continued to mount a strong rally that began with a dramatic reversal to the upside on June 3. The market is trading at $1014.30, up $14.90 or +1.49%.

Workers at Northam Platinum’s South African mine said on Tuesday they would not return to work until management and police provided them with safety guarantees after a spate of murders, despite appeals from the company that it was safe.

A leading South African trade union has been unsettled by the killing of its members at one of the country’s leading platinum mines with the latest murder sparking a job boycott.

The Zondereinde mine produces about 300,000 ounces of platinum a year, according to Northam’s website, and accounts for about 70 percent of the company’s revenue. South Africa is the world’s top producer of the precious metal used for catalytic converters in automobiles.

September Palladium, a metal also used by the auto industry, is trading at $564.00, up $11.85 or +2.32%. July Silver is trading higher, spiking to $16.875, up $0.481 2.93%.

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, June 9, 2016

Government Bond Auctions

Jun 08 11:03 Sweden Holds bond auction

Jun 08 11:05 Norway Holds bond auction

Jun 08 11:30 Germany Eur 5bn Jun 2018 Schatz

Jun 08 17:20 Italy Announces details of bond auction

Jun 09 11:30 UK 0.125% 2036 I/L Gilt

Jun 09 17:20 Sweden Announces details of I/L auction on Jun 16

Want to know more about gold price annual forecast 2016? Click here!