Precious Metals Fundamental Analysis – August 25, 2015 –Forecast – Gold, Silver & Platinum

Analysis and Recommendations:

Gold is amazingly flat today just adding 60 cents to 1160.20 as traders ran to safety but avoided gold and the US dollar. Silver fell 466 points so far today to trade at 14.835. Platinum got hit back giving up almost $40 to reach 987.40.

Mounting concern that global growth is faltering pummeled shares, emerging-market currencies and commodities last week, and the selloff deepened on Monday. Stock gauges from Japan to Australia sank with U.S. index futures, while China’s stocks plunged. Commodity prices sank to a 16-year low as crude oil and base metals retreated.

“Markets are nervous — and this is always good news for gold,” Gavin Wendt, managing director of Mine Life Pty in Sydney, said in an e-mail. “True investors have once again used market weakness as a tremendous buying opportunity, reinforcing my positive view on gold.”

The worldwide rout is shaking confidence that the global economy will be strong enough to withstand higher U.S. interest rates, diminishing prospects for tighter policy and buoying bullion. The dollar fell 0.2 percent on Monday.

Precious metals have features distinct from other commodities. Gold is neither valued nor priced solely as a commodity. Although purchased primarily for industrial use, it is bought also as an investment.

The International Monetary Fund defines gold held as part of official reserves or as a financial asset by institutions and individuals as “monetary” gold. Gold purchased primarily for industrial use is termed “commodity” gold.

London’s $15.1 trillion gold market accounted for 86 percent of physical gold global trading in 2011. It is administered by the London Bullion Market Association.

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:

Tuesday, August 25, 2015