Gold Fundamental Analysis October 6, 2014 Forecast

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Updated: Aug 24, 2015, 22:00 UTC

Analysis and Recommendations: Gold eased by $7.00 to trade at 1208.10 as traders prepared for the Nonfarm payroll report. Bloomberg reported that gold

Gold Fundamental Analysis October 6, 2014 Forecast

Gold Fundamental Analysis October 7, 2014 Forecast

Analysis and Recommendations:

Gold eased by $7.00 to trade at 1208.10 as traders prepared for the Nonfarm payroll report. Bloomberg reported that gold declined in London, with the metal almost erasing this year’s gains as the outlook for higher U.S. interest rates amid an improving economy curbs demand for the metal. Platinum dropped to a five-year low. Gold fell 0.8 percent this week, cutting its 2014 increase to 0.6 percent. The Bloomberg Dollar Spot Index, which reached a four-year high this week, rose before a U.S. report that economists say will show employers added the most jobs in three months. Improving U.S. data has added to speculation that the Federal Reserve will raise interest rates next year.

Gold was poised for a fourth weekly loss in five on Friday, hurt by the strength of the dollar in recent weeks, while platinum slumped to a five-year low. Silver, platinum and palladium are all headed for their fifth weekly decline in a row. All eyes are now on US nonfarm payrolls later in the day for more clues about the strength of the US economy, and the impact of the data on monetary policy and the dollar.

Markets believe robust US economic data could prompt the US Federal Reserve to raise interest rates sooner and faster than expected. That would hurt gold and other non-interest-bearing assets.

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
AUD	HIA New Home Sales	3.3%		-5.7%
CNY	Non-Manufacturing PMI	54.0		54.4
EUR	Spanish Services PMI	55.8	57.1	58.1
EUR	Italian Services PMI	48.8	49.6	49.8
EUR	French Services PMI	48.4	49.4	49.4
EUR	German Services PMI	55.7	55.4	55.4
EUR	Services PMI (Sep)	52.4	52.8	52.8
GBP	Services PMI (Sep)	58.7	59.1	60.5
EUR	Retail Sales (MoM)	1.2%	0.1%	-0.4%
USD	Nonfarm Payrolls (Sep)		215K	142K
USD	Private Nonfarm		210K	134K
USD	Trade Balance (Aug)		-40.90B	-40.60B
USD	Unemployment Rate		6.1%	6.1%