Gold Fundamental Forecast – May 4, 2016

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Published: May 3, 2016, 12:40 UTC

Gold could not hold the $1300 mark and is currently trading at 1298.50 with a gain of $2.70 so far in the session. Bullion climbed its highest in over two

Gold could not hold the $1300 mark and is currently trading at 1298.50 with a gain of $2.70 so far in the session. Bullion climbed its highest in over two years. Gold has rallied sharply since late last week after the dollar slumped on the Federal Reserve’s cautious stance towards higher US rates and as the yen soared after the Bank of Japan stood pat on policy last week. The metal rose to $1,303.60 an ounce on Monday, its strongest since January 2015, but ended the day lower on profit-taking. Spot gold had climbed 0.2% to $1,293.30 an ounce by 0633 GMT, after earlier hitting a session high of $1,296.81. “I think gold can reach $1,300-$1,400 in the second quarter. Investors are following the yen-dollar movement and central bank decisions, and the ETF inflows are a very good sign,” said Mark To, head of research at Wing Fung Financial Group. The dollar set a fresh 18-month low versus the yen on Tuesday. The dollar index hit its lowest since January 2015. The dollar weakness and strength in the gold price rally have triggered a sharp increase in money flowing into the SPDR Gold Trust, the world’s top gold-backed exchange-traded fund.

Gold prices scored a 15-month high of $1,306.00 in June Nymex futures in morning U.S. trading Monday, before backing off the daily high as the session progressed, on some mild profit-taking pressure. A depreciating U.S. dollar on the world foreign exchange markets is a major bullish element working in the precious metals bulls’ favor. Some safe-haven demand amid nervous world stock markets and chart-based buying interest has also been featured in gold just recently.

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.

Upcoming Economic Events that you should be monitoring:

Wednesday, May 4, 2016

Cur.	Event	Actual	Forecast	Previous
	Japan – Constitution Day
AUD	Building Approvals (MoM) (Mar)		-3.0%	3.1%
CNY	Caixin Manufacturing PMI (Apr)		49.9	49.7
AUD	Interest Rate Decision (May)		2.00%	2.00%
GBP	Manufacturing PMI (Apr)		51.2	51.0