Precious Metals Fundamental Analysis – November 5, 2015 – Forecast – Gold, Silver & Platinum

Analysis and Recommendations:

Gold recovered $3.60 to trade at 1117.70 giving a bit of its gains in the morning. Gold tumbled as low as $1113 on Tuesday. Silver is up a few points as the US dollar continued to gain and is trading at 15.25 and Platinum added $3.40 to 965.80. Gold prices fell to their lowest in a month on Tuesday, with investors reluctant to bet on the precious metal ahead of U.S. employment numbers later this week. Gold steadied near one-month lows on Wednesday as the previous day’s slide tempted some price-sensitive buyers back to the market, but it remained under pressure from a rising dollar and talk of a near-term hike in U.S. interest rates.

Federal Reserve officials kept short-term interest rates unchanged near zero last week but opened the door wider to the Fed raising rates at its final 2015 meeting in December. And higher rates would be bad news for gold, which pays its holders nothing and struggles to compete with yield-bearing investments when borrowing costs rise.

A strong U.S. nonfarm payroll number on Friday would bolster the case for the Fed to raise rates this year.

The payrolls report will be particularly scrutinized, he said. “A stronger-than-expected number will put the cat among the pigeons, considering it would be the first above-expectation number since May.”

Rising interest rates would weigh on gold by lifting the opportunity costs of holding non-yielding assets while boosting the dollar, in which bullion is priced.

The dollar rose 0.6 percent against a basket of major currencies.

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:

Wednesday, November 4, 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

Nov 09 12:00 Norway Details bond auction on 11 Nov

Nov 09 15:30 Italy Announces details of BTPs/CCTeu on 12 Nov

Nov 09 N/A US Holds 3-year note auction

Nov 10 10:30 UK 0.125% 2058 I/L Gilt auction

Nov 10 N/A Holland Eur 2.0-3.0bn 0% Apr 2018 DSL

Nov 10 N/A US Holds 10-year note auction

Nov 11 10:03 Sweden Holds bond auction

Nov 11 11:15 Norway Holds bond auction

Nov 11 10:30 Germany Eur 3bn 0.25% Oct 2020 Bobl

Nov 12 10:10 Italy Auctions BTPs/CCTeus

Nov 12 10:30 UK 4.25% 2039 Gilt auction

Nov 12 N/A US Holds 30-year bond auction