Gold Fundamental Analysis October 30, 2014 Forecast

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Updated: Aug 25, 2015, 07:00 UTC

Analysis and Recommendations: Gold eased by $2.90 to trade at 1226.50 ahead of the FOMC decision due shortly but on the whole traders believe the Fed’s

Gold Fundamental Analysis October 30, 2014 Forecast

Analysis and Recommendations:

Gold eased by $2.90 to trade at 1226.50 ahead of the FOMC decision due shortly but on the whole traders believe the Fed’s will stay the course and that they will show they are in no hurry to raise interest rates while the US economy is moderate but spotty.

The US housing sector also remained largely soft. The S&P/Case-Shiller composite index of home prices in 20 metropolitan areas gained 5.6 per cent in August from a year earlier, the slowest annual increase since November 2012.

Last year China imported a record 1,158.162 tonnes of gold from Hong Kong – the main conduit for gold into the mainland – spurred by a 28 per cent drop in global prices. But Chinese demand has since waned with gold prices largely steady this year after recovering from 15-month lows reached in early October. Russia increased its gold reserves for a sixth straight month in September, while Azerbaijan added to its holdings for a second month, according to data from the International Monetary Fund. Gold prices need to move lower to spur physical demand in Asia, Standard Bank analyst Walter de Wet said in a note.

The dollar was unchanged against a basket of leading currencies, having slipped in the previous session after weak economic data, which gives the US central bank reason to hold off from tightening its monetary policy.

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
JPY	Industrial Production	2.7%	2.2%	-1.9%
NZD	Business Confidence	26.5%		13.4%
CAD	RMPI (MoM) (Sep)		-1.0%	-2.2%
USD	FOMC Statement
USD	Fed Funds Target Rate		0.25%	0.25%

Upcoming Economic Events that you should be monitoring:

Cur.	Event	Actual	Forecast	Previous
NZD	RBNZ Rate Statement
AUD	HIA New Home Sales			3.3%
GBP	Nationwide HPI (MoM)		0.3%	-0.2%
GBP	MPC Member Cunliffe
EUR	Spanish GDP (QoQ)		0.5%	0.6%
EUR	German Unemployment		5K	13K
EUR	German Unemployment		6.7%	6.7%
USD	GDP (QoQ) (Q3)		3.0%	4.6%
USD	GDP Price Index (QoQ)		2.0%	2.1%
USD	Initial Jobless Claims		283K	283K
USD	Fed Chair Yellen
EUR	German CPI (MoM)		-0.1%	0.0%