Precious Metals Fundamental Analysis – August 24, 2015 – Forecast – Gold, Silver & Platinum

Analysis and Recommendations:

Gold continued to surprise traders adding another $2 today to trade at 1155.20. Silver fell by 92 points to reach 15.425 as traders booked profits as the metal soared over the past days. Platinum fell $7.55 as traders here also booked profits.

The precious metal rallied this week to one-month highs after Fed minutes released on Wednesday hinted that a rate hike might not happen in September. Gold prices are now up more than 6 percent from the late-July low and in the midst of its best week in five months, but the sharp rally has one gold bull yielding caution.

According to the Commodities Futures Trading Commission, total short positions in gold futures have dropped more than 8 percent from July 14, where it hit the highest level in more than two years.

Since reaching its high of just over $1,900 an ounce in September of 2011, gold has been crushed, falling 40 percent over that time while the dollar has rallied. But as mounting global economic uncertainty and Fed jitters have rattled the market of late, investors are once again piling into the precious metal.

On Thursday, gold shot up to a five-week high after dovish comments from the Federal Reserve threw fuel on currency fires already burning bright around the globe.

Last week large gold futures investors such as hedge funds, referred to as “managed money”, continued to hold near record short positions– bets that gold could be bought cheaper in the future – and added only slightly to  longs.

According to the Commodity Futures Trading Commission’s weekly Commitment of Traders data speculators’ short positions  was down slightly to more than 11.4 million ounces (323 tonnes), while longs grew by less than 600,000 ounces.

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.

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Monday, August 24, 2015