Gold Weekly Fundamental Analysis, October 13-17, 2014 Forecast

Weekly Analysis and Recommendations:

Gold turned weak on Friday after gaining steadily most of the week in response to Fed speakers and the release of FOMC minutes on Wednesday. Gold closed the week at 1223.30. Gold futures inched down at the end of the week with a stronger U.S. dollar trumping a further wave of risk aversion as global equities declined, taking a cue from a sharp selloff in U.S. stocks a day earlier.

Global equities weakened. U.S. stock index futures pointed to a weaker start on Wall Street, but trimmed earlier losses, while the dollar rose, with the ICE dollar index gaining 0.4 percent.  A stronger dollar can weigh on commodities priced in the unit by making them more expensive to users of other currencies.

Gold retained gains from a four-day rally on Friday and was headed for its best week in nearly four months as a slump in equities and growing worries over the global economy attracted safe-haven bids for the metal.

 The metal has risen more than 2.7 percent for the week, its best since the week ended June 20, after recovering from a 15-month-low under $1,200 hit on Monday.

Next week’s economic highlights include Retail Sales, PPI, Empire Manufacturing, Business Inventories, and the Fed’s Beige Book on Wednesday, Initial Jobless Claims, Industrial Production, Capacity Utilization, the Philadelphia Fed, the NAHB Housing Market Index, and Net Long-Term TIC Flows on Thursday, and Housing Starts, Building Permits, and Michigan Sentiment on Friday.

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 recent analysis and information in our weekly reports and we provide daily updates and outlooks.

Historical: From 2011 to present

Highest: 1911.60 on Sep 06, 2011

Average: 1633.45 over this period

Lowest:   1180.35 on Jun 28, 2013

 

Upcoming Major Economic Events for the week of Oct 13-17, 2014