Gold Fundamental Analysis October 23, 2014 Forecast

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Updated: Aug 25, 2015, 02:00 UTC

Analysis and Recommendations: Gold eased by $4.30 to trade at 1247.70 as traders are unsure about what the next steps are. The US dollar gained momentum

Gold Fundamental Analysis October 23, 2014 Forecast

Analysis and Recommendations:

Gold eased by $4.30 to trade at 1247.70 as traders are unsure about what the next steps are. The US dollar gained momentum weakening the demand for gold and secure assets. Gold was trading near its highest level since early September on Wednesday, supported by concern about slower economic growth in China, although expectations Asian physical demand may slacken kept gains in check. Worry over the fate of the global economy heightened this week after China said third-quarter growth was the slowest since 2009, lifting appetite for safe-haven assets such as gold.

Rising physical demand due to the festival of Diwali and the global investor gravitation towards safe have assets seem to have collaborated since early October to push the gold price up from $1,190/oz. on October 3 to the current spike

The yellow metal continues to move upwards despite the global equity markets settling down after last week’s rout. A US Federal Reserve official noted last week that the Fed may not stall its QE3 programme at the end of this month as scheduled, renewing investor interest in equities. Physical demand for safe haven gold from China, the other big gold consuming nation, is high as the Chinese economy is showing signs of slowing down from its blistering pace.

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:

Cur.	Event	Actual	Forecast	Previous
JPY	Exports (YoY) (Sep)	6.9%	6.8%	-1.3%
JPY	Trade Balance (Sep)	-958B	-777B	-949B
AUD	CPI (QoQ) (Q3)	0.5%	0.4%	0.5%
AUD	CPI (YoY) (Q3)	2.3%	2.3%	3.0%
GBP	MPC Meeting Minutes
USD	Core CPI (MoM) (Sep)		0.2%	0.0%
USD	CPI (MoM) (Sep)		0.1%	-0.2%
CAD	Retail Sales (MoM)		0.2%	-0.1%
CAD	BoC Monetary Policy
CAD	Interest Rate Decision		1.00%	1.00%

Upcoming Economic Events that you should be monitoring:

Cur.	Event	Actual	Forecast	Previous
AUD	RBA Governor Stevens
NZD	CPI (QoQ) (Q2)		0.5%	0.3%
CNY	HSBC Mfg. PMI		50.2	50.2
EUR	German Mfg PMI		49.5	49.9
EUR	German Services PMI		55.0	55.7
EUR	Manufacturing PMI		49.9	50.3
EUR	Services PMI (Sep)		52.0	52.4
GBP	BBA Mortgage		41.5K	41.6K
GBP	Core Retail Sales (MoM)		-0.2%	0.2%
GBP	Retail Sales (MoM)		-0.1%	0.4%
GBP	CBI Industrial Trends		-4	-4
USD	Initial Jobless Claims		282K	264K