Gold Fundamental Analysis October 10, 2014 Forecast

Analysis and Recommendations: December Comex Gold futures closed higher despite the strong recovery in the U.S. Dollar. The current rally began when the dollar began selling off earlier in the week. On Thursday, the dollar was boosted by better-than-expected weekly unemployment numbers.

Generally oversold conditions, which led to aggressive short-covering and the dovish Fed minutes are the catalysts behind this week’s strength in gold. On Wednesday, the Fed minutes revealed its concerns about the weakening global economy and the strength of the dollar.

The current rally in gold is not likely to last because of low global inflation. New shorts are likely to come in if gold reaches a major retracement zone at $1253.80 to $1270.40.

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 

                Currency                                                  Event                                                     Forecast        Previous                 

                 EUR                                          French Industrial Production                                 -0.2%             0.2%

                 GBP                                          Trade Balance                                                       -9.6B             -10.2B

                 CAD                                          Employment Change                                            18.7K            -11.0K

                 CAD                                          Unemployment Rate                                              7.0%              7.0%

                 USD                                          Import Prices m/m                                                -0.5%             -0.9%

                 USD                                          FOMC Member Plosser Speaks

                 ALL                                           IMF Meetings

                 CAD                                          BOC Business Outlook Survey

                 ALL                                           G20 Meetings

                 USD                                          FOMC Member Fisher Speaks