Analysis and Recommendations: Gold is flat as traders wait for tomorrow’s nonfarm payroll report and watch an array of Fed speakers. Gold is trading at
Gold is flat as traders wait for tomorrow’s nonfarm payroll report and watch an array of Fed speakers. Gold is trading at 1084.70 while Silver is in the red at 14.53 and Platinum is in the green adding $1.90 to 952.80. Prices are falling as investors dump the metal in favor of stocks, bonds, or cash, which they see as a better short-term investment. Gold is losing its luster as the Greek crisis has quieted and the U.S. economy is looking increasingly strong; on Thursday, the U.S. government reported the lowest weekly jobless claims in over 40 years.
Longer term, there are increasing expectations that the U.S. Federal Reserve will begin raising interest rates this year after eight years of falling or flat rates, which has been dampening investment interest in gold. Many would-be gold buyers seek the metal as protection against inflation, but higher interest rates could prevent prices from rising.
Asian gold demand hardly perked up this week even as the price of the precious metal languished near its lowest since 2010 with many would-be buyers predicting further price declines, keeping premiums steady in the world’s top gold consuming region.
Gold is on course to post a sixth consecutive weekly loss, its longest retreat since 1999, after U.S. economic expansion in the first half backed expectations for the Federal Reserve to raise interest rates this year.
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 |
|||
AUD |
Employment Change (Jul) |
38.5K |
10.0K |
7.0K |
|||
AUD |
Unemployment Rate (Jul) |
6.3% |
6.0% |
6.1% |
|||
EUR |
German Factory Orders (MoM) (Jun) |
2.0% |
0.2% |
-0.3% |
|||
GBP |
Halifax House Price Index (YoY) (Jul) |
7.9% |
8.2% |
9.6% |
|
||
GBP |
Industrial Production (MoM) (Jun) |
-0.4% |
0.1% |
0.3% |
|||
GBP |
Manufacturing Production (MoM) |
0.2% |
0.2% |
-0.6% |
|
||
GBP |
BoE Inflation Report |
|
|
|
|
||
GBP |
BoE QE Total (Aug) |
375B |
375B |
375B |
|
||
GBP |
Interest Rate Decision (Aug) |
0.50% |
0.50% |
0.50% |
|
||
GBP |
BoE MPC Meeting Minutes |
|
|
|
Upcoming Economic Events that you should be monitoring:
Friday, August 7, 2015
Cur. |
Event |
Actual |
Forecast |
Previous |
|||
JPY |
BoJ Press Conference |
|
|
|
|
||
USD |
Nonfarm Payrolls (Jul) |
|
223K |
223K |
|
||
USD |
Unemployment Rate (Jul) |
|
5.3% |
5.3% |
|
||
CAD |
Employment Change (Jul) |
|
5.0K |
-6.4K |
|
||
CAD |
Ivey PMI (Jul) |
|
52.0 |
55.9 |
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
Aug 19 11:30 Germany Eur 5bn Sep 2017 Schatz
Aug 19 11:03 Sweden Holds bond auction
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