Gold Fundamental Analysis October 7, 2014 Forecast

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Updated: Aug 24, 2015, 23:00 UTC

Analysis and Recommendations: Gold reserved early morning losses to trade flat today at 1193.50 as traders bought up the cheap commodity in droves after

Gold Fundamental Analysis October 7, 2014 Forecast

Analysis and Recommendations:

Gold reserved early morning losses to trade flat today at 1193.50 as traders bought up the cheap commodity in droves after falling 23.50 on Friday and declining $10.00 in the Asian session. Apart from it being the festive season in India, the increased sales of gold in Dubai can be owed to the low prices currently. Residents and tourists have been flocking the jewelry stores after Friday’s steep decline.

The drop in prices can be attributed to low global demand. Prices in New York, which largely determine international rates, have declined after speculation that the US may increase interest rates on the back of an improvement in the labour market.

Gold prices stabilized somewhat after the yellow metal’s safe-haven status took a beating in Asian trading on Monday morning. Prices were pulled down by the US dollar’s strength and the absence of physical buying in China, the leading consumer of the precious metal.

Given gold’s recent run, it is unclear whether this movement is a consolidation or simply a pause before continuing on a downward trajectory, according to analysts.

“Gold has held up relatively well compared to the other precious metals but, in our view, remains vulnerable, given our dollar and rates view. The cost of production offers little support for prices amidst weak physical demand, but market focus will shift towards the extent of strength in Chinese gold demand after the national holiday,” Barclay’s analysts said.

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
EUR	German Factory Orders	-5.7%	-2.5%	4.9%
CAD	Ivey PMI		53.0	50.9

Upcoming Economic Events that you should be monitoring:

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