Gold Fundamental Analysis October 24, 2014 Forecast

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Updated: Aug 25, 2015, 02:00 UTC

Analysis and Recommendations: Gold fell $5.80 to trade at 1239.70 as the US dollar gained momentum after US inflation data printed on a positive note on

Gold Fundamental Analysis October 24, 2014 Forecast

Analysis and Recommendations:

Gold fell $5.80 to trade at 1239.70 as the US dollar gained momentum after US inflation data printed on a positive note on Wednesday. Over the period, prices of gold – the most popular security asset in the world – have fallen from a high of $1,921 per ounce to $1,240 per ounce.

Economists said any further drop in prices is likely to render the gold production unviable. Already, the mining cost is on upward trend. For example, an average recovery from operative mines was five grams/ton in 1990s contrary to an average 1.18gms/per ton now, said an economist.

As the emerging fast growing economies look towards gold as safer investment avenue, the US dollar and euro rates are likely to go higher in the coming days. Asian economies having huge dollar reserves scramble to shield themselves by buying gold.

A surprise upward print of eurozone PMI data is helping to ease market stress and the appeal of precious metals. After two days of gains, gold prices fell on the eve of Diwali in the Indian capital on October 22 owing to slackened demand from jewelers and retailers at existing higher levels amid a weak trend in the global markets.

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
NZD	CPI (QoQ) (Q2)	0.3%	0.5%	0.3%
AUD	Business Confidence	6		6
CNY	HSBC Mfg. PMI	50.4	50.3	50.2
EUR	French Mfg. PMI	47.3	48.5	48.8
EUR	French Services PMI	48.1	48.2	48.4
EUR	German Mfg. PMI	51.8	49.5	49.9
EUR	German Services PMI	54.8	55.0	55.7
EUR	Manufacturing PMI	50.7	49.9	50.3
EUR	Services PMI (Oct)	52.4	52.0	52.4
GBP	Mortgage Approvals	39.3K	41.5K	41.4K
GBP	Core Retail Sales (MoM)	-0.3%	-0.2%	0.3%
GBP	Core Retail Sales (YoY)	3.1%	3.4%	4.4%
GBP	Retail Sales (MoM)	-0.3%	-0.1%	0.4%
GBP	Retail Sales (YoY) (Sep)	2.7%	2.8%	3.7%
GBP	CBI Industrial Trends		-4	-4
USD	Initial Jobless Claims		282K	264K

Upcoming Economic Events that you should be monitoring:

Cur.	Event	Actual	Forecast	Previous
NZD	Trade Balance (MoM)		-700M	-472M
NZD	Trade Balance (YoY)		1,510M	2,020M
GBP	GDP (QoQ) (Q3)		0.7%	0.9%
GBP	GDP (YoY) (Q3)		3.0%	3.2%
USD	New Home Sales (Sep)		470K	504K
USD	New Home Sales (MoM)		-5.8%	18.0%