Precious Metals Fundamental Analysis – November 23 – November 27, 2015 Forecast – Gold, Silver & Platinum

Analysis and Recommendations: The precious metals complex finished lower last week, but the selling pressure was not as intense as the previous weeks. Technically oversold conditions contributed to the near-bottoming action, however, the biggest influence on the complex was the price action in the U.S. Dollar. 

Trading in the U.S. Dollar featured two-sided price action last week. This led to two-sided price action in gold although the primary bias was to the downside. 

February Comex Gold closed at $1077.30, down $4.20, or 0.39%. March Comex Silver finished at $14.165, down $0.065, or 0.46%. January NYMEX Platinum closed down $5.70, or 0.66% at $855.70. 

The precious metals complex has been under pressure for several weeks, or since the odds of a December Fed rate hike moved from 30% to 70%. The rate hike will make the dollar more attractive while pressuring demand for gold, for example, which doesn’t pay a dividend or interest. 

The week’s price action was at times driven by trader reaction to the Fed minutes which were perceived by traders as less-hawkish as the actual Fed statement. Additionally, traders have become more focused on the timing of future rate hikes because the language of the Fed minutes put new emphasis on a series of “gradual” rate hikes. 

Oversold conditions and some light position-squaring because of concerns about the timing of future rate hikes could produce another two-sided trade this week. However, gains are likely to be limited while the way of least resistance remains to the downside. 

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. 

 

 

Major Economic Events for the week: 

        Date                Time             Curr                          Events                                                                           Forecast  Previous