Gold Weekly Fundamental Analysis, October 20-24, 2014 Forecast

Weekly Analysis and Recommendations:

Gold soared to 1250 this week as traders moved to risk off mode looking for safe havens. There was a shift and an easing of tensions late in the week as gold dipped to trade at 1238.00 well off its lows near 1180 just a week before. Federal Reserve Bank of Boston President Eric Rosengren on Friday said he would be surprised if policymakers would see enough economic data to change their minds on ending the Fed’s bond-buying program at their next policy meeting. 

“I’d be surprised if in the next two weeks we get enough data to make us change our mind on” ending the bond-buying program, also known as quantitative easing, Mr Rosengren told CNBC in an interview. The central bank’s next policy meeting is on October 29. 

The imbalances see the US, the world’s biggest economy, on one side. It was the biggest to fall when a cataclysmic build-up of risks based on overpriced housing led to the greatest financial collapse and recession since the 1930s depression. It is showing some signs of recovery. On the other side is Europe, Japan and China, the first two still battling to regenerate economic growth and stave off catastrophic deflation six years after the great collapse and the third trying to manage an orderly slowdown in economic growth.

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

 

Economic Highlights of the coming week:

Upcoming Government Bond Auctions

Date Time Country 

Oct 21 10:30 Spain 3 & 9M T-bill auction

Oct 21 11:00 Norway Bond auction

Oct 21 11:00 UK Auctions 2.75% 2024 Gilt

Oct 22 11:30 Germany Eur 2.0bn Aug 2046 Bund auction

Oct 23 11:03 Sweden I/L bond auction

Oct 23 17:00 US Announces 2/5/7Y Note & 2Y FRN auctions on Oct 28/29/30 & 29

Oct 23 17:30 Italy Announces details of BTPei/CTZ auctions on Oct 28

Oct 23 19:00 US 30Y TIPS auction

Oct 24 17:30 Italy Announces details of BOT auction on Oct 29