Precious Metals Fundamental Analysis – August 21, 2015 – Forecast – Gold, Silver & Platinum

Analysis and Recommendations:

Gold continued to gain after the release of dovish Federal Reserve minutes on Wednesday afternoon. Gold added over $10 today to trade at 1138.50. Silver is up 196 points at 15.375 and Platinum added %5.35 to 1018.45. Gold headed for a second weekly gain after minutes from the Federal Reserve’s policy meeting in July showed officials needed more evidence of a strengthening economy, signaling a September interest rate increase may be unlikely.

The US dollar tumbled on Wednesday, easing pressure on dollar-denominated commodities including gold, after minutes from the FOMC’s July meeting showed policy makers needed more proof that the labor market is healing and that inflation is moving toward the targeted level in order to increase borrowing costs. Fed officials were concerned that low inflation and a weak global economy posed a sizable risk for the US economy, paring speculations for an interest rate hike in September and boosting gold’s investment appeal.

Investors tend to avoid the yellow metal during times of economic growth and tighter monetary policy as it pays returns only through price gains, while holders of other assets, such as bonds, benefit from the higher interest rates.

Holdings in gold-backed ETPs rose 0.2% on Wednesday, according to Bloomberg data, but were still near the lowest since 2009. Assets in the SPDR Gold Trust, the biggest bullion-backed ETF, were unchanged for a fifth day on Wednesday at 671.87 tons after they rebounded a week earlier from the lowest since September 2008. Holdings in the fund have shrunk by little over 50% since peaking at at 1353.35 tons in December 2012.

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:

 

Upcoming Economic Events that you should be monitoring:

Friday, August 21, 2015

Government Bond Auctions

Date Time Country

Aug 20 10:30 Spain Auctions Bonos/Obligaciones

Aug 20 11:30 UK Auctions 4.25% 2036 Gilt

Aug 21 17:30 Italy Announces details of CTZ/BTPei on 26 Aug