By FXEmpire.com
Analysis and Recommendations:
Gold is trading at 1613.05. Today’s comments from ECB President that the bank would not sit idly by and let the euro collapse, were well received by the markets, and have skewed prices in today’s session with the euro soaring close to 200 points in just a short time span. The markets will likely see corrections towards the close and in tomorrow’s session.
In the midst of unrelenting worries over the eurozone debt contagion, market focus has now turned upon the release of advanced estimates of second quarter US GDP which is scheduled for release tomorrow. Sentiments were mixed in commodities ahead of the key data. Precious metals moved mostly steady, sustaining the previous session gains. Spot gold held above $1600 an ounce, near its three week high. Hopes of more central bank action to support the flagging economic growth boosted the prices. Base metals in LME weakened after trading mostly steady earlier today as worries over demand continued to cap gains. LME copper and nickel dropped more than one per cent. String of weak data from the leading economics weighed on the sentiments. Tracking losses in the international market, base metal complex dropped in MCX too.
US durable goods are a market neutral with large factory orders pushing the total number over economist projections and unemployment coming in better than expected. The question facing markets now, will these changes reduce the possibility of the Fed offering stimulus next week
These results have a number of implications. To reduce the uncertainty of the return on gold transactions, traders may wish to time their orders flow so as to avoid the release of information that has been shown to affect prices. For longer-term market participants, these results provide confirmation of the pro-cyclical bias of many commodities and gold’s role as a safe-haven during periods of economic uncertainty.
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.
Economic Data July 26, 2012 actual v. forecast
|
Date |
Currency |
Event |
Actual |
Forecast |
Previous |
|
Jul. 26 |
KRW |
South Korean GDP (QoQ) |
0.4% |
0.5% |
0.9% |
|
JPY |
BoJ Governor Shirakawa Speaks |
||||
|
EUR |
GfK German Consumer Climate |
5.9 |
5.8 |
5.8 |
|
|
USD |
Core Durable Goods Orders (MoM) |
-1.1% |
0.1% |
0.8% |
|
|
USD |
Durable Goods Orders (MoM) |
1.6% |
0.4% |
1.6% |
|
|
USD |
Initial Jobless Claims |
353K |
380K |
388K |
|
|
USD |
Continuing Jobless Claims |
3287K |
3310K |
3317K |
Upcoming Economic Events that affect the CHF, EUR, GBP and USD
|
Date |
Time |
Currency |
Event |
Previous |
|
Jul 27 |
27th-31st |
GBP |
-0.6% |
|
|
All Day |
EUR |
-0.1% |
||
|
7:00 |
CHF |
1.16 |
||
|
12:30 |
USD |
1.9% |
||
|
13:55 |
USD |
72.0 |
Government Bond Auctions
Date Time Country
Jul 27 09:10 Italy
Jul 27 17:00 US
Click here for updated Gold News.
Originally posted here
