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Precious Metals Fundamental Analysis, May 12, 2015 – Forecast – Gold, Silver & Platinum

Precious Metals Fundamental Analysis, May 12, 2015 – Forecast - Gold, Silver & Platinum

Precious Metals Fundamental Analysis, May 12, 2015 – Forecast – Gold, Silver & Platinum

Analysis and Recommendations:

Gold dipped $4.10 to 1184.80 but remains fairly flat with low volume as traders see no direction or drivers. The US dollar is the only thing supporting prices as the greenback has eased off April highs. Silver is fairly flat today as traders look at the surprise interest rate decrease from China over the weekend, which might help bump up the demand on metals. Platinum is down $6.45 outpacing gold in today’s session. Gold declined for the third time in four days after investors sold the most from bullion-backed funds in seven months.

Holdings in exchange-traded products dropped 10.1 metric tons, the most since October 8, according to data compiled by Bloomberg as of Friday.

Investors have sold the metal amid speculation a strengthening economy will prompt the Federal Reserve to raise interest rates this year. US payroll data released on Friday showed job growth improved in April to come in just below economists’ estimates, while the unemployment rate declined. Higher borrowing costs curb gold’s appeal because the metal generally offers returns only through price gains.

“US non-farm payroll data shows unemployment conditions are moving closer to what the Fed considers to be full employment,” Jonathan Butler, a precious metals strategist at Mitsubishi in London, said by email. “This raises the prospect of wage inflation and leaves open the possibility of a hike in US interest rates in September or October this year.”

ForexTraq 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 actual vs. forecast:

Cur.

 

Event

Actual

Forecast

Previous

 

  EUR

 

ECB’s Nowotny Speaks  

 

 

 

 

 

  GBP

 

BoE QE Total (May)

 375B

375B

375B

 

 

  GBP

 

Interest Rate Decision (May)

 0.50%

0.50%

0.50%

   

 gold mon

Upcoming Economic Events that you should be monitoring:

Tuesday, May 12, 2015

Cur.

 

Event

Actual

Forecast

Previous

 

  GBP

 

BRC Retail Sales Monitor (YoY)

 

 

3.2%

 

 

  AUD

 

Home Loans (MoM) (Mar)

 

1.0%

1.2%

 

 

  GBP

 

Industrial Production (MoM)

 

0.1%

0.1%

 

 

  GBP

 

Manufacturing Production

 

0.3%

0.4%

 

 

  USD

 

JOLTs Job Openings (Mar)

 

5.085M

5.133M

 

 

  USD

 

Federal Budget Balance (Apr)

 

146.5B

-53.0B

   

Government Bond Auctions

Date Time Country

May 12 09:15 Norway Holds bond auction

May 13 09:10 Italy Auctions BTPs/CCTeus

May 13 09:30 Germany Eur 3bn Feb 2025 Bund

May 13 14:30 Sweden Details bond auction on 20 May

May 14 09:30 UK Auctions 2% 2020 Conventional Gilt

 

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