Gold Fundamental Analysis – December 1, 2015 – Forecast

Analysis and Recommendations:

Gold recovered some of its morning losses but remains in the red at 1054.70 down $1.50 for the session as the US dollar continues to rally. The greenback is p 25 points at 100.31 coming near the top of its range.  Strength in US dollar hurt the Gold prices and the metal dropped yet again near six year lows. The counter was supported earlier on strong demand for Gold coins in the US and bargain buying. Geopolitical tensions also escalated after Turkey shot down a Russian ground attack aircraft, adding another layer of worry in a region that is already grappling with massive wave of terrorist attacks. However, the US dollar has gained sharply on ideas that the ECB would resort to further monetary easing in the near term. Dollar lingered near its multi month high of 1.0600 against the Euro. COMEX Gold futures failed to hold onto a feeble rally above $1070 per ounce and tumbled under $1060 per ounce levels in thin trades following the Thanksgiving Day holidays in the US.  Gold extended losses on Monday, dropping towards its lowest level in nearly six years, and was poised to record its steepest monthly slide in 2½ years on prospects of a US interest rate hike this year.

The precious metal has fallen out of favor as investors position themselves for the first US rate hike in nearly a decade. The Federal Reserve is expected to raise rates at its next policy meeting on Dec 15-16.

Investors believe gold, as a non-interest-paying asset, will take a hit to demand from higher rates as the dollar gains. Assets in SPDR Gold Trust, the world’s top gold-backed exchange-traded fund, fell to their lowest since September 2008 on Friday. The strength in the dollar also kept a lid on any increase in gold prices.

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 up to the data analysis and information in our weekly reports.

Today’s economic releases:

 

Upcoming Economic Events that you should be monitoring:

Tuesday, December 1, 2015

Government Bond Auctions

Date Time Country

Dec 02 11:30 UK Gbp 3.75bn 1.5% Jan 2021 Gilt

Dec 02 16:30 Sweden Announces details of Bond on 11 Dec

Dec 03 10:30 Spain 1.15% Jul 2020 Bono

Dec 03 10:50 France

Dec 03 11:03 Sweden Sek 0.7bn 1%

Dec 07 13:00 Norway Details bond auction on 09 Dec

Dec 07 17:30 Italy Announces details of BTP/CCTeu on 11 Dec

Dec 08 11:30 UK 3.5% 2045 Gilt auction

Dec 08 19:00 US Holds 3-year note auction

Dec 09 11:03 Sweden Holds bond auction

Dec 09 11:05 Norway Holds bond auction

Dec 09 11:30 Germany Eur 3bn Dec 2017 Schatz

Dec 09 19:00 US Holds 10-year note auction

Dec 10 19:00 US Holds 30-year bond auction

Dec 11 11:10 Italy Auctions BTPs/CCTeus