Analysis and Recommendations (Gold And Silver Analysis Forecast):
Gold gave back over $7 as the US dollar rallied. Gold touched a bit below the 1220 level and is trading at 1220.50. Silver fell 285 outpacing gold to trade at 17.447 and Platinum fell more than $10 to 1168.25. Analysts said the fall in the yellow metal’s prices at futures trade was mostly in tandem with a weak trend overseas before the US Federal Reserve releases minutes of its latest meeting and investors assess economic data for clues on when interest rates will rise.
Gold ETFs, such as SPDR, issue shares to investors backed by physical metal. Liquidation of the shares will release physical metal into the market. But so far this month the drop in SPDR’s holdings has not been reflected in spot prices, suggesting a price correction may be on the cards, analysts say.
In the past seven trading sessions, outflows from New York-based SPDR totaled 21 tonnes; with the May 8 outflow of 10.74 tonnes the highest daily outflow so far this year. The drawdown, worth $825 million at current prices, cut SPDR’s holdings to 718.24 tonnes as of Monday, the lowest since mid-January.
The outflows are a big hint that some investors are expecting prices to fall and are getting out of their positions while they can still make some profit, analysts say.
Gold, which enjoyed a brief resurgence earlier this year, seems to be losing ground amid stagnant prices and a rising greenback.
ForexTraq provides in-depth analysis for each currency and commodity we review in forex trading. 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 for Gold And Silver in our weekly reports.
Today’s economic releases actual vs. forecast:
|NZD||PPI Input (QoQ) (Q1)||-1.1%||-0.7%||-0.4%|
|AUD||Monetary Policy Meeting|
|NZD||Inflation Expectations (QoQ)||1.9%||1.8%|
|GBP||CPI (MoM) (Apr)||0.2%||0.4%||0.2%|
|GBP||CPI (YoY) (Apr)||-0.1%||0.0%||0.0%|
|GBP||PPI Input (MoM) (Apr)||0.4%||0.8%||0.4%|
|EUR||German ZEW Current Conditions||65.7||68.0||70.2|
|EUR||German ZEW Economic||41.9||49.0||53.3|
|EUR||Core CPI (YoY) (Apr)||0.6%||0.6%||0.6%|
|EUR||CPI (YoY) (Apr)||0.0%||0.0%||0.0%|
|EUR||CPI (MoM) (Apr)||0.2%||0.2%||1.1%|
|EUR||Trade Balance (Mar)||23.4B||22.8B||20.3B|
|EUR||ZEW Economic Sentiment||61.2||62.4||64.8|
Upcoming Economic Events that you should be monitoring for Gold And Silver in forex trading:
Wednesday, May 20, 2015
|JPY||GDP (QoQ) (Q1)||0.4%||0.4%|
|JPY||GDP (YoY) (Q1)||1.5%||1.5%|
|AUD||Westpac Consumer Sentiment||-3.2%|
|EUR||German PPI (MoM) (Apr)||0.2%||0.1%|
|GBP||BoE MPC Meeting Minutes|
|CAD||Wholesale Sales (MoM) (Mar)||0.7%||-0.4%|
|USD||Crude Oil Inventories||-2.191M|
|USD||FOMC Meeting Minutes|
Government Bond Auctions
Date Time Country
May 20 09:03 Sweden Holds bond auction
May 21 08:30 Spain Auctions Bonos
May 21 09:03 Sweden Holds bond exchange auction
May 21 09:10 France Auctions BTANs
May 21 09:30 UK Auctions 4.75% 2030 Conventional Gilt
May 21 10:10 France Auctions
May 21 15:30 Italy Announces details of CTZ/BTPei on 26 May
May 21 15:00 US Announces details of 2-year FRN on 27 May, plus 2/5/7 year
May 21 17:00 US Auctions 10-year TIPs
May 22 09:03 Sweden Holds bond exchange auction
May 22 10:00 Norway Details bond auction on 27 May
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