Precious Metals Fundamental Analysis – November 19, 2015 – Forecast – Gold, Silver & Platinum

Analysis and Recommendations:

Gold was more less flat holding near close to its lowest price in 2015. Gold traders are waiting for the FOMC minutes today and speeches from two Fed members. Gold is trading at 1068.50. Silver dipped 51 points to 14.12 while Platinum fell over $8 to 846.80.  Traders said sentiment remained bearish largely on weak global trend where gold slumped to over five-year lows as a report showed a pick-up in US consumer prices, strengthening bets that the Fed will raise interest rates next month. Besides, the dollar traded at its strongest in more than a decade, too weighed on gold prices, they said.

Gold nudged higher on the London spot market, but precious metals continue to trade near multiyear lows as expectations for a rise in U.S. interest rates next month whittle away at investor confidence in the complex. The price of gold began trade by sinking to its lowest level since February 2010, before it recovered slightly to trade up.

Bullion prices have fallen for 14 out of 16 sessions, under pressure from prospects of the first US interest rate hike in nearly a decade in December. Higher rates would increase the opportunity cost of holding the non-yielding metal.

Data on Tuesday showing US consumer prices increased in October fuelled further those expectations, while market odds for a December hike moved from about 30% to 66%.

Precious metals managed to regain some lost ground as the dollar eased 0.1% against a basket of currencies, retreating from an earlier seven-month high. European shares fell, retreating from solid gains made in the previous session.

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:

Thursday, November 19, 2015

Government Bond Auctions

Date Time Country

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