Gold Fundamental Analysis October 27, 2014 Forecast

Analysis and Recommendations:

Gold added $2.70 to trade at 1231.80 as the metal moved between losses and gains as traders pondered the global economic situation with inflation remaining low. Traders are focused on the upcoming Federal Reserve meeting. Gold dipped for a third session in a row on Friday and was set to snap a two-week winning streak as a firmer US dollar and robust economic data dented the metal’s appeal as a hedge. The shiny metal decline comes despite a tumble in US stock futures and gains in other safe-havens such as bonds and the yen after a doctor in New York City tested positive for Ebola. The metal was weighed down by strong global economic data on Thursday that calmed investor nerves after a recent selloff, prompting many to pull out of gold and get back into riskier assets.

Reports yesterday showed that new claims for US unemployment benefits held below 300,000 for a sixth straight week last week, suggesting the labour market was shrugging off jitters over a slowing global economy.

Euro zone businesses performed much better than forecasters expected this month and China’s vast factory sector grew a shade faster, but US manufacturing activity sputtered to its slowest since July, underscoring the uneven nature of the post-crisis global economy.

Holdings in SPDR Gold Trust, the world’s top bullion ETF, fell to its lowest since late 2008 this week, in a sign of lingering bearish sentiment in the bullion market.

The fund also saw earlier this week its biggest daily percentage drop in holdings in a year despite a price jump to a six-week high.

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:

 

Upcoming Economic Events that you should be monitoring:

Government Bond Auction

Date Time Country Auction

Oct 27 12:30 Germany Eur 2.0bn new 12M Bubill (Oct 2015) auction

Oct 27 18:30 Italy Announces details of BTP/CCTeu auctions on Oct 30

Oct 27 12:10 Italy BTPei/CTZ auctions

Oct 28 12:10 Italy BOT auction

Oct 28 19:00 US 2Y Note auction

Oct 29 12:03 Sweden Bond auction

Oct 29 12:30 Germany Eur 4.0bn Aug 2024 Bund auction

Oct 29 17:30 US 2Y FRN auction

Oct 29 19:00 US 5Y Note auction

Oct 30 12:10 Italy BTP/CCTeu auctions

Oct 30 19:00 US 7Y Note auction