Gold Weekly Fundamental Analysis – February 8-12, 2016 -Forecast

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Published: Feb 6, 2016, 06:01 UTC

Weekly Analysis and Recommendations: Gold soared this week adding 5.19% to close at 1174.30. Gold scaled an eight-month peak on Friday as buyers rushed to

Gold Weekly Fundamental Analysis – February 8-12, 2016 -Forecast

Weekly Analysis and Recommendations:

Gold soared this week adding 5.19% to close at 1174.30. Gold scaled an eight-month peak on Friday as buyers rushed to buy jewelry in the marriage season besides protecting their investments in an asset, which enjoys safe haven status at times of choppy stock markets.

As a non-interest bearing asset, dollar-denominated gold becomes less attractive if US interest rates rise. Market players said a firming global trend – as dollar extended losses amid fading expectations of a US rate hike this year, boosting appeal of the precious metal – mainly kept gold prices higher. The dollar’s retreat has been sparked by tepid US data, raising concerns over the strength of the economy and dampening expectations of further rate increase this year.

Falling equity markets, both in developed and developing markets, credit and currency worries in China and monetary easing from major central banks other than the US Federal Reserve have made gold look more attractive.

While stocks were plunging on Friday, the biggest gold exchange-traded fund closed out its biggest weekly advance in 2 1/2 years.

The SPDR Gold Shares (GLD) added 1.6% to $112.32 on Friday, capping a 5.02% weekly advance that was the biggest since July 2013 when it rose 5.11%. Before then, you need to go all the way back to October 2011, when GLD added 6.3%. Gold futures finished the week up 3.7% at $1,157.80, while silver futures rose 3.8%.

FxEmpire provides in-depth analysis for each currency and commodity 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 recent analysis and information in our weekly reports and we provide daily updates and outlooks.

Major Economic Events for the week:


Date	Currency		Forecast
Feb 7	JPY	Current Account	1.59T
Feb 8	CAD	Building Permits m/m
	USD	Mortgage Delinquencies
Feb 9	AUD	NAB Business Confidence
	GBP	Trade Balance	-10.4B
	USD	JOLTS Job Openings	5.54M
	AUD	Westpac Consumer Sentiment
Feb 10	GBP	Manufacturing Production m/m	0.0%
Feb 11	CAD	NHPI m/m	0.3%
	USD	Unemployment Claims	287K
Feb 12	AUD	Home Loans m/m	2.9%
	EUR	German Prelim GDP q/q	0.3%
	EUR	Flash GDP q/q	0.3%
	USD	Core Retail Sales m/m	0.0%
	USD	Retail Sales m/m	0.1%
	USD	Import Prices m/m	-1.4%
	USD	UoM Consumer Sentiment	92.6
Feb 13