Precious Metals Fundamental Analysis – November 3, 2015 – Forecast – Gold, Silver & Platinum

Analysis and Recommendations:

Gold is trading at 1137.70 down almost $4 in today’s session as it seems more and more possible that the Fed will raise rates in December. Silver fell 172 points to 15.395 while the US dollar continued to decline but holds strong just at the 97 price level. Gold fell to its lowest level in four weeks today, extending a sell-off into a fourth straight session as investors feared the Federal Reserve would raise US interest rates this year.

The technical picture for gold has deteriorated, with traders warning of further price drops. Physical demand and investor flows have also not supported the metal.

Gold had rallied last month on speculation that the softness in the global economy could prompt the Fed to delay the rate hike to next year. But the US central bank’s hawkish tone last week triggered a sell-off in bullion.

Gold is expected to trade back down below $1,100 in the fourth quarter (Q4) of 2015, which brings an annual average of $1,159 during the year, according to a newly released Thomson Reuters report.

Gold is set to remain under pressure until there is more clarity on the timing and the scale of US rates normalization, said the report entitled “GFMS Gold Survey: Q3 2015 Review and Outlook”, an authoritative source of independent supply and demand data for the gold industry.

Among other bearish factors are low inflation expectations and generally weak investor sentiment towards precious metals. That said, gold may draw some support from a seasonal uptick in physical demand towards year-end, and the prospects look brighter for the next 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:

 

Upcoming Economic Events that you should be monitoring:

Tuesday, November 3, 2015

Government Bond Auctions

Date Time Country

Nov 03 10:10 Austria Holds RAGB bond sale

Nov 04 15:30 Sweden Announces details of Bond on 11 Nov

Nov 04 N/A Holland Announces details of Bond on 10 Nov

Nov 05 09:30 Spain Auctions Bonos

Nov 05 09:50 France Auctions OATs

Nov 05 10:03 Sweden Holds I/L bond auction