Gold Fundamental Analysis October 20, 2014 Forecast

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Updated: Aug 25, 2015, 01:00 UTC

Analysis and Recommendations: Gold eased by $3.90 to trade at 1237.30 as traders took position ahead of Janet Yellen’s speech due shortly. Gold traded

Gold Fundamental Analysis October 20, 2014 Forecast

Analysis and Recommendations:

Gold eased by $3.90 to trade at 1237.30 as traders took position ahead of Janet Yellen’s speech due shortly. Gold traded below a five-week high, headed for the first back-to-back weekly increase since July, amid speculation signs of a global slowdown led by Europe may delay the onset of higher U.S. borrowing costs. Palladium rose. In a sign of higher investor interest, SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, said its holdings rose 0.2% to 760.94 tonnes on Thursday.

Gold prices are trading lower by 0.2 percent today as investors weighed rebounding equities and signs of a global economic slowdown. As world markets tumble and the euro zone crisis seemingly reared its head once more, investors have scrambled to find somewhere safe to house their cash.

The dollar has also been dubbed a “new defensive” as it has rallied on both weak and positive market days, and has been bolstered by “flight to quality” flows and a general move away from emerging markets.

Gold edged down on Friday as shares rebounded, although it was set for a gain for a second straight week as concerns over the global economy raised speculation the US Federal Reserve could keep interest rates low for longer.

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 actual vs. forecast:

There are no data releases scheduled Friday in Asian or European markets, focus will be on Janet Yellen’s speech later today

Cur.	Event	Actual	Forecast	Previous
USD	Building Permits (Sep)		1.029M	1.003M
USD	Building Permits (MoM)		2.8%	-5.1%
USD	Fed Chair Yellen Speaks
USD	Housing Starts (MoM)		4.8%	-14.4%
USD	Housing Starts (Sep)		1.004M	0.956