August Comex Gold futures continued to weaken, falling to a seven-week low as global equities rallied along with the U.S. Dollar. Both moves hurt demand
August Comex Gold futures continued to weaken, falling to a seven-week low as global equities rallied along with the U.S. Dollar. Both moves hurt demand for the non-yielding precious metal.
The U.S. futures contract was trading at $1224.40, down, $7.80 or -0.63%. Spot gold was down 0.47 percent at $1226.60 an ounce, off an earlier low of $1220.24.
Bullish gold traders cite the fact that gold is still out-performing stocks in 2016 despite the stronger dollar and the threat of multiple interest rate hikes. Investors have been aggressively buying the SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, all year. On Tuesday, however, holdings in the fund declined for the first time in a month, dropping 0.44 percent to 868.66 tonnes.
Gold prices could accelerate to the downside if investors in the gold ETF decide to book profits and liquidate positions. This would lead to a huge amount of gold hitting the cash market.
There are no major economic reports today, but three Fed members are scheduled to speech. Hawkish comments from these members could underpin the dollar and send another wave of sellers into the gold market. Greater demand for higher-yielding assets like stocks will also pressure gold which doesn’t pay a dividend or interest.
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 |
USD | API Weekly Crude Oil Stock | -5.137M | -3.300M | -1.140M |
USD | API Weekly Cushing Crude Oil Stock | -0.189M | -0.950M | 0.508M |
NZD | Trade Balance (MoM) (Apr) | 292M | 60M | 117M |
NZD | Trade Balance (YoY) (Apr) | -3,660M | -3,940M | -3,380M |
AUD | Construction Work Done (QoQ) (Q1) | -2.6% | -1.5% | -3.6% |
EUR | GfK German Consumer Climate (Jun) | 9.8 | 9.7 | 9.7 |
EUR | German Business Expectations (May) | 101.6 | 100.8 | 100.4 |
EUR | German Current Assessment (May) | 114.2 | 113.2 | 113.2 |
EUR | German Ifo Business Climate Index (May) | 107.7 | 106.8 | 106.6 |
EUR | EU Finance Ministers Meeting | |||
USD | Goods Trade Balance (Apr) | -60.10B | -56.90B | |
USD | FOMC Member Harker Speaks | |||
USD | Services PMI (May) | 53.1 | 52.8 | |
CAD | Interest Rate Decision | 0.50% | 0.50% | |
USD | Crude Oil Inventories | -2.450M | 1.310M | |
USD | Cushing Crude Oil Inventories | 0.461M | ||
USD | FOMC Member Kashkari Speaks | |||
USD | FOMC Member Kaplan Speaks | |||
AUD | Private New Capital Expenditure (QoQ) (Q1) | -3.0% | 0.8% |
Upcoming Economic Events that you should be monitoring:
Thursday, May 26, 2016
Cur. | Event | Actual | Forecast | Previous |
GBP | BBA Mortgage Approvals | 44.8K | 45.1K | |
GBP | Business Investment (QoQ) (Q1) | 0.1% | -2.0% | |
GBP | GDP (YoY) (Q1) | 2.1% | 2.1% | |
GBP | GDP (QoQ) (Q1) | 0.4% | 0.4% | |
USD | FOMC Member Bullard Speaks | |||
USD | Core Durable Goods Orders (MoM) (Apr) | 0.3% | -0.2% | |
USD | Durable Goods Orders (MoM) (Apr) | 0.5% | 1.3% | |
USD | Initial Jobless Claims | 275K | 278K | |
AUD | RBA Assist Gov Debelle Speaks | |||
USD | Pending Home Sales (MoM) (Apr) | 0.6% | 1.4% | |
USD | FOMC Member Powell Speaks | |||
AUD | RBA Assist Gov Debelle Speaks | |||
JPY | National Core CPI (YoY) (Apr) | -0.4% | -0.3% | |
JPY | Tokyo Core CPI (YoY) (May) | -0.4% | -0.3% |
Government Bond Auctions
May 25 11:03 Sweden Sek 1bn 3.5% 2022 & Sek 3bn 1% 2026 bonds
May 25 11:05 Norway Holds bond auction
May 25 11:30 Germany Eur 1bn 2.5% Jul 2044 Bund
May 25 19:00 US Holds 5Yr Notes Auction, 2Yr FRN
May 26 11:10 Italy Announces details of bond auction
May 26 11:10 Italy Holds Zero-coupon/BTPei auction
May 26 17:20 Sweden Details of I/L auction on Jun 02
May 26 19:00 US Holds 7Yr Notes Auction
May 30 11:10 Italy Holds bond auction
Jun 01 10:30 Denmark Holds bond auction
Jun 01 11:30 Germany Eur 4bn Apr 2021 Bobl
Jun 01 11:30 UK 1.5% 2021 Gilt
Jun 01 17:20 Sweden Announces details of bond auction on Jun 08
Jun 02 10:30 Spain Holds bond auction
Jun 02 11:03 Sweden Holds I/L bond auction
Jun 02 11:50 France Holds bond auction
James is a Florida-based technical analyst, market researcher, educator and trader with 35+ years of experience. He is an expert in the area of patterns, price and time analysis as it applies to futures, Forex, and stocks.