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Gold Fundamental Forecast – May 30, 2016

By:
Barry Norman

Gold continued its slow decline giving up a bit over $2 to trade at 1218.10 as strong US data and a hawkish Fed point towards more rate increases this

Gold Fundamental Forecast – May 30, 2016

Gold continued its slow decline giving up a bit over $2 to trade at 1218.10 as strong US data and a hawkish Fed point towards more rate increases this year. The U.S. Federal Reserve continued to lay the groundwork for an interest rate hike in the next two months, with Governor Jerome Powell saying he felt the U.S. economy was on a “solid footing” and within reach of the central bank’s inflation goals.

The U.S. economy is set to grow by a 2.9 percent annualized rate in the second quarter following the latest data on durable goods orders and advance goods trade, the Atlanta Federal Reserve’s GDPnow forecast model showed on Thursday.

U.S. business spending intentions weakened in April for a third straight month amid soft demand for machinery, but a surge in contracts to purchase previously owned homes to a 10-year high supported views economic growth was gaining speed.

Top consumer China’s net gold imports via main conduit Hong Kong fell 4.2 percent in April from a three-month high in the previous month, data showed on Thursday.

Gold prices continued to make progress downward after breaking three-month support, modestly bolstering the likelihood for bearish follow-through. The yellow metal pared intraday losses after dropping to a seven-week low however as disappointing US Markit PMI figures crossed the wires and poured cold water on Fed rate hike bets. Indeed, prices rebounded as front-end bond yields traded lower.

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.

gold

Upcoming Economic Events that you should be monitoring:

Monday, May 30, 2016

Cur. Event Actual Forecast Previous  
    United Kingdom – May Bank Holiday
    United States – Memorial Day
  JPY Retail Sales (YoY) (Apr)     -1.1%  
  AUD HIA New Home Sales (MoM) (Apr)     8.9%  
  AUD Company Gross Operating Profits     -2.8%  
  CAD Current Account (Q1)     -15.4B  
  CAD RMPI (MoM) (Apr)     4.5%

Government Bond Auctions

Date Time       Country           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

 

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