Precious Metals Fundamental Analysis – November 17, 2015 – Forecast – Gold, Silver & Platinum

Analysis and Recommendations:

Gold gained a bit over $10 but gave back some of its initial gains as markets seemed to remain unstressed over the terrorist acts in France. Global stock markets are being hit hard as well as the euro as France closed its borders. Silver added 136 points to 14.34 but remains at the bottom of its trading range while Platinum added a bit more than $5 to 869.05 remaining near its bottom prices. Gold is set to rebound from a five-year low on Monday while other commodities keep trading on their own fundamentals as the terrorist attacks in Paris won’t change much for global supply and demand of raw materials from copper to coffee.

Multiple attacks in Paris on Friday killed more than 130 people, prompting France to launch air strikes in Syria against Islamic State, which claimed responsibility for the attacks. At a G20 summit in Turkey, U.S. President Barack Obama vowed to step up efforts to eliminate Islamic State and prevent it carrying out attacks like those in Paris. EU leaders urged Russia to focus its military efforts on the radical Islamists. 

U.S. stock futures were sharply lower and the euro skidded in early Asian trading on Monday, with stocks expected to take their cue from poor investor appetite for risk after the Paris assault and Wall Street’s steep losses.

Gold is typically seen as a safe-haven asset during times of uncertainty. Persistent weakness in stocks could further boost bullion. Before Monday’s gains, gold had fallen for 12 sessions out of 13 on increasing bets that the Federal Reserve would hike U.S. rates next month. Rising rates tend to weigh on gold, as they lift the opportunity cost of holding non yielding assets.

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, November 17, 2015

Government Bond Auctions

Date Time Country

Nov 18 11:30 Germany New Eur 5bn Dec 2017 Schatz

Nov 18 11:30 UK 2% 2025 Gilt auction

Nov 18 11:30 Portugal Eur 1-1.25bn; bond auction

Nov 18 16:30 Sweden Announces details of Bond on 25 Nov

Nov 18 N/A Holland Announces details of Bond on 24 Nov

Nov 19 10:30 Spain 0.25% Apr 2018 Bono, 1.15% Jul 2020 Bono, 5.4% Jan 2023

Nov 19 10:50 France Eur 7-8bn; 4.25% Oct 2018 OAT, 0.25% Nov 2020 OAT, 2.25%

Nov 19 11:50 France Eur 1-1.5bn; 0.25% Jul 2024, 1.85% Jul 2027, 3.15% Jul 2032

Nov 19 N/A US Holds 10-year TIPS auction

Nov 20 16:30 Italy Announces details of CTZ/BTPei on 25 Nov

Nov 23 12:00 Belgium Auctions OLOs

Nov 23 N/A US Holds 2-year note auction

Nov 24 17:30 Italy Announces details of BTPs/CCTeu on 27 Nov

Nov 24 N/A Holland Eur 1.0-2.0bn 0.25% Jul 2025 DSL

Nov 24 N/A US Holds 5-year note auction

Nov 25 11:03 Sweden Holds bond auction

Nov 25 11:10 Italy Auctions CTZ/BTPei

Nov 25 11:30 Germany Eur 3bn 1.0% Aug 2025 Bund

Nov 25 N/A US Holds 2-year FRN auction

Nov 25 N/A US Holds 7-year note auction

Nov 26 11:03 Sweden Holds bond auction

Nov 27 11:03 Sweden Holds bond auction

Nov 27 11:10 Italy Auctions BTPs/CCTeus