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    JM Bullion Weekly Market Preview (6/15/15)

    Gold prices are moving slightly higher to begin the new trading week as stocks are being sold off, crude oil moves lower and the dollar index is slightly stronger.

    As of this post, the gold market has risen back above former support around the $1180 level in what may be indicative of short-covering and bargain hunting buying.

    While key outside markets are in a bearish posture for gold today, that bearish posture is likely being offset by safe-haven demand for the yellow metal. Ongoing negotiations between Greece and its creditors have reportedly broken down once again over the weekend in what could be one of the final straws before a potential default. With the four month bailout extension set to run out at the end of this month, the clock is ticking exponentially at this point and time to make a deal is running very short. This has some stock investors running for the exits while gold, silver and the dollar are seeing a bid on some safe-haven demand.

    Unfortunately, the fear of the unknown surrounding Greece may continue for the time being. Another meeting is scheduled 10 days from now, however, as the deadline approaches without a deal in place investors may potentially get more anxious and gold could stand to benefit on risk aversion.

    This week will also be fairly busy from a data standpoint. Investors will get the latest readings on the Housing Market Index, Industrial Production, Housing Starts, CPI, Leading Indicators, Weekly Jobless Claims and Empire State Manufacturing data. The Federal Open Market Committee will begin its meeting tomorrow, with an announcement on policy on Wednesday. This will likely represent the data highlight of the week. While the FOMC will likely not make any changes to rates at this meeting, it remains a possibility.

    Wednesday’s Fed announcement will likely focus more on some recent economic strength being seen rather than economic weakness. This week’s announcement will also be followed by a press conference with Federal Reserve Chairwoman Janet Yellen. This press conference and any commentary from the central bank could give markets more clarity as to the timing of the first rate hike which is still expected by many analysts to be in September.

    With ongoing concerns over Greece, the large amount of data being released this week and quadruple witching taking place, this trading week could see some volatility. Gold may remain range-bound to higher as investors await commentary from the Fed and digest any further developments coming from Greece and the IMF/EU.

    Disclaimer: All Market Updates are provided as a third party analysis and do not necessarily reflect the explicit views of JM Bullion Inc. and should not be construed as financial advice.

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