Gold Fundamental Analysis October 28, 2014 Forecast

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Updated: Aug 25, 2015, 03:00 UTC

Analysis and Recommendations: Gold is holding steady today ahead of the FOMC meeting later in the week. Gold is trading at 1230.70. The FOMC will hold its

Gold Fundamental Analysis October 28, 2014 Forecast

Analysis and Recommendations:

Gold is holding steady today ahead of the FOMC meeting later in the week. Gold is trading at 1230.70. The FOMC will hold its meeting on October 28-29. The statement of the meeting is expected to announce the end of QE3. If Bullard were able to shift the tides in the FOMC and persuade Yellen to keep the QE3 at its current pace – as an open end purchase program, this could have a positive impact on gold and silver prices. Keep in mind, however, this scenario isn’t likely. The recent recovery of the U.S. dollar along with the rally of U.S. equities provided the proper climate to see gold and silver fall down. Moreover, the latest interview given by Bullard gave the necessary excuse to keep the speculations around the FOMC’s next meeting. This also allowed easing down on the hawkish tone of the FOMC from the past meetings.

Money managers’ net bullish position in gold rose 45 percent in the week ended Oct. 21, the biggest gain since June, U.S. Commodity Futures Trading Commission data show. Holdings in bullion-backed exchange-traded products contracted to a five-year low last week, data compiled by Bloomberg show.

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
	USD		Pending Home Sales		0.5%	-1.0%

Upcoming Economic Events that you should be monitoring:

Cur.	Event	Actual	Forecast	Previous
JPY	Retail Sales (YoY) (Sep)		0.6%	1.2%
USD	Core Durable Goods		0.5%	0.4%
USD	Durable Goods Orders		0.6%	-18.4%
USD	S&P/CS HPI Composite		5.8%	6.7%
USD	Consumer Confidence		87.0	86.0