Precious Metals Fundamental Analysis – August 14, 2015 – Forecast – Gold, Silver & Platinum

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Updated: Aug 13, 2015, 11:20 UTC

Analysis and Recommendations: Gold gave back some of its gains as China continued to manage its currency as the new price fixing process seems to have

Precious Metals Fundamental Analysis – August 14, 2015 – Forecast - Gold, Silver & Platinum

Analysis and Recommendations:

Gold gave back some of its gains as China continued to manage its currency as the new price fixing process seems to have been well planned and the PBOC remain ready to act as they allow their currency to move to the markets. Traders panicked this week but have begun to back away and relax. Gold is trading at 1116.30 down $7.30 for the day. Silver tumbled 151 points to 15.325 remaining near the top of its recent trading range, while Platinum eased by $6.75 to 993.15.

China’s currency devaluation is helping gold shine in the midst of a collapse in commodities and a pullback in stocks.

Prices for the precious metal have bounced from multiyear lows to stand at their highest level in nearly a month. On Wednesday, gold closed at $1,123.20 a troy ounce, up 3.5% from its 52-week low July 24.

Some investors say that China’s currency devaluation makes the Federal Reserve less likely to raise interest rates next month. Lower U.S. rates are good news for gold, which typically struggles to compete with yield-bearing investments when borrowing costs rise.

At the same time, the turmoil in financial markets is sending investors out of commodities and stocks into traditional havens, such as gold and Treasury securities.

The yield on the benchmark 10-year note was 2.134% from 2.142% Tuesday. Bond yields drop as prices rise.

“Many people were shell shocked by everything that’s happened in the last few days and turned to gold as a haven,” said George Gero, a senior vice president with RBC Capital Markets Global Futures in New York. “Now, the question is whether the rally will stick.”

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
NZD	Business NZ PMI (Jul)	53.5		55.2
GBP	RICS House Price Balance (Jul)	44%	42%	40%
AUD	RBA Assist Gov Kent Speaks
EUR	German CPI (MoM) (Jul)	0.2%	0.2%	0.2%
EUR	Spanish CPI (YoY) (Jul)	0.1%	0.1%	0.1%
EUR	Spanish HICP (YoY) (Jul)	0.0%	-0.1%	-0.1%
CHF	PPI (MoM) (Jul)	-0.3%	-0.2%	-0.1%
EUR	Account of Monetary Policy Meeting

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