Precious Metals Fundamental Analysis – August 26, 2015 – Forecast – Gold, Silver & Platinum

Analysis and Recommendations:

Gold eased $5.50 today as market calm returned. Gold is trading at 1148.10 while Silver added just 23 points and Platinum was flat at 990.80. Gold fell on Tuesday as Asian shares bounced off three-year lows and the U.S. dollar rebounded from a brutal selloff in the prior session that was fueled by fears over the fate of the Chinese economy.

Palladium was the worst hit among precious metals, slumping more than 7 percent at one stage to its lowest since 2010, adding to a 5 percent slide on Monday.

Some Asian stocks recovered in tandem with U.S. futures even as Chinese shares tanked further. The dollar gained versus a basket of currencies after falling the most since 2011.

“If that remains the case over the course of this session then buying interest in gold could dry up,” said Michael McCarthy, chief market strategist at CMC Markets in Sydney.

Markets made gains after China’s central bank cut interest rates and lowered the amount of reserves banks must hold for the second time in two months.

“If those trends continue, then certainly it will create some short-term pressure on gold prices as the initial fear in the marketplace that we saw yesterday dissipates,” Standard Chartered analyst Nicholas Snowden said.

Gold has rebounded sharply from the 5-1/2 year low it hit in July on the back of expectations that the Federal Reserve was on track to raise interest rates this year for the first time in nearly a decade, lifting the opportunity cost of holding gold while boosting the dollar.

While those expectations have receded after a dovish reading of the minutes of the Fed’s last policy meeting and on fears of a broader global economic slowdown, they are keeping a lid on gold’s gains.

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:

Wednesday, August 26, 2015

Government Bond Auctions

Date Time Country

Aug 25 00:00 UK Announces details of Jan 2021 gilt

Aug 25 17:30 Italy Announces details of BTP/CCTeu on 28 Aug

Aug 25 19:00 US Holds 2-year note auction

Aug 26 11:10 Italy Eur 3bn 0.15% Aug 2017 CTZ

Aug 26 19:00 US Holds 2-year FRN note auction

Aug 26 12:05 Norway Holds bond auction

Aug 26 19:00 US Holds 5-year note auction

Aug 26 19:00 US Holds 2-year FRN auction

Aug 27 11:03 Sweden Sek 0.5bn 0.125% I/L Jun 2019, Sek 0.5bn 1% Jun 2025 bonds

Aug 27 19:00 US Holds 7-year note auction

Aug 28 11:10 Italy Auctions BTPs/CCTeus

Sep 01 11:15 Austria Holds RAGB bond sale

Sep 01 00:00 UK Announces details of 3.5% 2045 Gilt

Sep 02 11:03 Sweden Holds bond auction

Sep 02 11:30 Germany Eur 4bn 0.25% Oct 2020 Bobl

Sep 02 11:30 UK Auctions new Jan 2021 Gilt

Sep 03 10:30 Spain Auctions Bonos/Obligaciones

Sep 03 11:10 France Auctions OATs

Sep 03 00:00 US Announces details of 3yr note on 08 Sep, 10yr note on 09 Sep

Sep 03 00:00 US Announces details of 10-year note on 09 Sep