Precious Metals Fundamental Analysis – August 13, 2015 – Forecast – Gold, Silver & Platinum

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Updated: Aug 12, 2015, 12:39 UTC

Analysis and Recommendations: Gold soared to 1116.50 adding almost $9 in today’s session as traders worried about the effects of Chinese currency

Precious Metals Fundamental Analysis – August 13, 2015 - Forecast - Gold, Silver & Platinum

Analysis and Recommendations:

Gold soared to 1116.50 adding almost $9 in today’s session as traders worried about the effects of Chinese currency devaluations and the effect on global markets. Silver added 26 points to 15.310 while Platinum was flat at 992.50. Gold extended a recovery from recent lows on Monday as its resilience below USD 1,100 disappointed those expecting a deeper decline, but expectations that US interest rates could rise as early as September kept up pressure on prices. The metal has fallen in the second half of this year on the prospect of rising rates, which would lift the opportunity cost of holding bullion while boosting the dollar. Gold has however found support after sliding to a 5-1/2 year low at USD 1,077 an ounce last month.

Bullion traders said a firming global trend where gold again topped the USD 1,100 an ounce mark, as investors may have factored in the likely impact from the first US rate increase since 2006, which may come next month, and on speculation that physical demand in Asia may be picking up, gold prices rallied at the domestic market.

Gold rose for a fifth session in a row on Wednesday, hitting a fresh three-week high as the dollar and European equities slid on concerns over China’s devaluation of its currency.

Earlier in the day, the People’s Bank of China set the yuan’s midpoint reference rate weaker than Tuesday’s surprise 2 per cent devaluation.

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:

Cur.	Event	Actual		Forecast	Previous
USD	API Weekly Crude Oil Stock	-0.847M	-1.800M		-2.400M
JPY	Monetary Policy Meeting Minutes
AUD	Westpac Consumer Sentiment (Aug)	7.8%			-3.2%
AUD	Wage Price Index (QoQ) (Q2)	0.6%	0.6%		0.5%
JPY	Industrial Production (MoM) (Jun)	1.1%	0.8%		0.8%
JPY	Tertiary Industry Activity Index	0.3%	0.1%		-0.7%
CNY	Fixed Asset Investment (YoY) (Jul)	11.2%	11.5%		11.4%
CNY	Industrial Production (YoY) (Jul)	6.0%	6.6%		6.8%
GBP	Average Earnings Index +Bonus (Jun)	2.4%	2.8%		3.2%
GBP	Claimant Count Change (Jul)	-4.9K	1.5K		0.2K
GBP	Unemployment Rate (Jun)	5.6%	5.6%		5.6%
EUR	Industrial Production (MoM) (Jun)	-0.4%	-0.2%		-0.4%

Upcoming Economic Events that you should be monitoring:

Friday, August 14, 2015

Cur.	Event	Actual	Forecast	Previous
NZD	Core Retail Sales (QoQ)		0.7%	2.9%
EUR	German GDP (QoQ) (Q2)		0.5%	0.3%
EUR	Core CPI (YoY) (Jul)		1.0%	1.0%
EUR	CPI (MoM) (Jul)		-0.6%	0.0%
EUR	GDP (QoQ) (Q2)		0.4%	0.4%
USD	PPI (MoM) (Jul)		0.1%	0.4%
CAD	Manufacturing Sales (MoM) (Jun)		2.1%	0.1%
USD	Industrial Production (MoM) (Jul)		0.3%	0.3%
USD	Michigan Consumer Sentiment (Aug)		93.5	93.1