By FXEmpire.com
Analysis and Recommendations:
Gold is trading at 1581.45 to end the month and the quarter surprisingly strong. Investors were expecting to see gold close down for the month and the quarter but with today’s surge gold regains it sparkle.
The overall market sentiment got a lift after EU leaders agreed on for a creation of single supervisory body for Euro Zone banks opening doors for banks to recapitalize directly without adding to the government debt. Commodities and equities rose boosted by the EU deal. Spot gold gained more than one per cent tracking gains in Euro. However, it was on its course to register its worst quarter since 2004.
Meanwhile, spot silver rose nearly two per cent. Base metals jumped as the EU deal lessened the worries over the euro zone debt contagion. LME Zinc was the best per former rising more than two per cent followed by lead, copper, nickel and aluminum. Crude oil rebound from the nine month low on expectation that EU measures to tackle the debt crisis might spur demand for the commodity. However, crude oil was on its track to post its worst quarter since 2008 end.
Gold slipped more than two percent in Thursday’s session but recovered swiftly today after tracking a strong euro.
Mounting global economic slowdown shifted investors to safer havens like the US dollar which prompted a selloff in gold. Enduring liquidation in spot gold for the last few months shows that prices are still on a track to post its worst quarterly loss since 2004. US economy grew modestly in the first quarter, while jobless claims edged down last week and remained in a range indicating US job markets are still struggling. US Gross domestic product report showed that the economy rose at an annual rate of 1.9 percent. In the meantime, physical buying from Asian countries still remain lackluster with India posting a terrible month.
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 for June 29, 2012 actual v. forecast
|
Date |
Currency |
Event |
Actual |
Forecast |
Previous |
|
JPY |
Unemployment Rate |
4.4% |
4.6% |
4.6% |
|
|
JPY |
Tokyo Core CPI (YoY) |
-0.6% |
-0.7% |
-0.8% |
|
|
JPY |
Industrial Production (MoM) |
-3.1% |
-2.8% |
-0.2% |
|
|
EUR |
French GDP (QoQ) |
0.0% |
0.0% |
0.0% |
|
|
EUR |
French Consumer Spending (MoM) |
0.4% |
-0.1% |
0.7% |
|
|
CHF |
KOF Leading Indicators |
1.16 |
0.85 |
0.80 |
|
|
NOK |
Norwegian Core Retail Sales (MoM) |
1.70% |
0.50% |
-0.20% |
|
|
EUR |
CPI (YoY) |
2.4% |
2.4% |
2.4% |
|
|
USD |
Core PCE Price Index (MoM) |
0.1% |
0.2% |
0.1% |
|
|
GDP (MoM) |
0.3% |
0.2% |
0.1% |
||
|
USD |
Personal Spending (MoM) |
0.0% |
0.1% |
0.1% |
|
|
USD |
Chicago PMI |
NR |
52.5 |
52.7 |
|
|
USD |
Michigan Consumer Sentiment |
NR |
74.1 |
74.1 |
Upcoming Economic Events for Monday July 2, 2012
|
Date |
Currency |
Event |
Actual |
Forecast |
Previous |
|
JPY |
Tankan Large Manufacturers Index |
-4 |
-4 |
||
|
CHF |
Retail Sales (YoY) |
4.5% |
0.1% |
||
|
CHF |
SVME PMI |
45.0 |
45.4 |
||
|
EUR |
Unemployment Rate |
11.1% |
11.0% |
||
|
USD |
ISM Manufacturing Index |
52.5 |
53.5 |
Click here for further Gold Forecast.
Originally posted here
