Advertisement
Advertisement

Precious Metals Fundamental Analysis – August 6, 2015 – Forecast – Gold, Silver & Platinum

By:
Barry Norman
Updated: Aug 5, 2015, 14:49 UTC

Analysis and Recommendations: Gold dipped $5.20 losing in the Asian session and then sitting tight the rest of the day as traders focus on the climbing US

Precious Metals Fundamental Analysis – August 6, 2015 – Forecast – Gold, Silver & Platinum

Precious Metals Fundamental Analysis – August 6, 2015 – Forecast - Gold, Silver & Platinum
Precious Metals Fundamental Analysis – August 6, 2015 – Forecast - Gold, Silver & Platinum
Analysis and Recommendations:

Gold dipped $5.20 losing in the Asian session and then sitting tight the rest of the day as traders focus on the climbing US dollar after positive comments from Fed members seem to indicate that an interest rate increase in September was a done deal. Gold moved to 1085.50 while silver fell to 14.485 and platinum fell $7.15 to 951.35.  Gold prices have been hovering at five-year lows as investors sold the precious metal in preparation for a potential increase in U.S. interest rates. The Federal Reserve is widely expected to increase borrowing costs before the year is out, ending a historic period of near-zero interest rates. Like other commodities, gold doesn’t pay interest and costs money to store. This will make it harder for the precious metal to compete with interest-bearing assets like Treasury bonds once the U.S. central bank tightens monetary policy.

“As we’re approaching September, certain Fed members are getting hawkish,” said Ira Epstein, a broker with Linn & Associates in Chicago. “The Fed wants to get aggressive and raise the rates, and that is going to give a bid to the dollar and that is going to be negative gold,” he said.

Platinum plunged to a 6½-year low, while palladium fell to a 2½-year low on continued worries about weaker demand from China. Investors worry that the country’s slowing economy will dent domestic demand for cars. Both platinum and palladium are widely used in car exhaust filters, and China is the world’s largest car market.

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

 

  CNY

 

Caixin Services PMI (Jul)

53.8

52.2

51.8

 

 

  RUB

 

Markit Services PMI (Jul)

51.6

49.2

49.5

 

 

  CHF

 

CPI (MoM) (Jul)

-0.6%

-0.4%

0.1%

 

 

  EUR

 

Spanish Services PMI (Jul)

59.7

55.5

56.1

 

 

  EUR

 

German Services PMI (Jul)

53.8

53.7

53.7

 

 

  EUR

 

Markit Composite PMI (Jul)

53.9

53.7

53.7

 

 

  EUR

 

Services PMI (Jul)

54.0

53.8

53.8

 

 

  GBP

 

Services PMI (Jul)

57.4

58.0

58.5

 

 

  EUR

 

Retail Sales (MoM) (Jun)

 -0.6%

-0.3%

0.1%

 

 
                 

 

Gold(60 minutes)20150805064745

Upcoming Economic Events that you should be monitoring:

Thursday, August 6, 2015

Cur.

 

Event

Actual

Forecast

Previous

 

  AUD

 

Employment Change (Jul)

 

15.0K

7.3K

 

 

  GBP

 

Manufacturing Production (Jun)

 

0.2%

-0.6%

 

 

  GBP

 

BoE Inflation Report

 

 

 

 

 

  GBP

 

Interest Rate Decision (Aug)

 

0.50%

0.50%

 

 

  GBP

 

BoE MPC Meeting Minutes

 

 

 

 

 

  GBP

 

BoE Gov Carney Speaks  

 

 

     

Government Bond Auctions

Date Time Country

Aug 06 10:30 Spain Auctions Bonos

Aug 06 11:10 France Auctions OATs

Aug 10 17:30 Italy Announces details of BTP/CCTeu on 13 Aug

Aug 11 11:30 UK Auctions 0.125% 2058 I/L Gilt

Aug 12 11:30 Germany Eur 4bn Aug 2025 Bund

Aug 13 11:10 Italy Auctions BTPs/CCTeus

 

About the Author

Did you find this article useful?

Advertisement