By FXEmpire.com
Analysis and Recommendations:
Gold is slowly declining to retrace its early trend headed towards 1520, before the FOMC and Greek affairs pushed gold up temporarily. The beginning of the week has been void of major eco data, with US housing starts soaring to record highs yesterday, but markets did not react as they are more focused on news flow and risk aversion.
Gold is headed for the biggest quarterly decline in almost four years, partly because the Fed decided against a third round of debt purchases. The metal surged 70 percent from the end of December 2008 to June 2011 as the Fed kept borrowing costs at a record low and bought $2.3 trillion of debt in two rounds of so- called quantitative easing.
Gold consumption in India has declined this month, on a combination of higher prices, lower demand and the higher duties in India.
Caution prevailed in the market ahead of the two day European Union summit in Brussels later this week. Cynicism over the same kept euro near the two year low. Cyprus becoming the fifth nation in Euro zone to file for bailout, Spain putting forth a formal request for European funds and Moody’s mass downgrade of 28 Spanish banks added to woes, eroding the risk appetite of the investors. Spot gold stretched gain for the third consecutive day but began to decline in early trading but is seen as mostly steady ahead of the EU Summit.
Base metal in LME traded mostly steady to negative. LME copper was seen trimming the initial gains as all eyes are on the Euro Zone while the demand from China continued to be sluggish. Tracking weakness in the global market MCX base metal complex too were in negative territory. Copper reversed its initial gains while zinc, lead and aluminum dropped more than 0.5 per cent extending the previous session losses. Aluminum in Shanghai exchange dropped over three per cent after China’s top aluminum producing province of Henan rolled out power subsidies to smelters in an attempt to revive output.
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.
Upcoming Economic Events that affect the CHF, EUR, GBP and USD
|
Date |
Time |
Currency |
Event |
Previous |
|
Jun 27 |
All Day |
EUR |
-0.2% |
|
|
8:30 |
GBP |
32.4K |
||
|
10:00 |
GBP |
21 |
||
|
12:30 |
USD |
0.2% |
||
|
14:00 |
USD |
-5.5% |
||
|
14:30 |
USD |
|||
|
Jun 28 |
7:55 |
EUR |
0K |
|
|
8:30 |
GBP |
-8.5B |
||
|
8:30 |
GBP |
|||
|
8:30 |
GBP |
-0.3% |
||
|
12:30 |
USD |
|||
|
12:30 |
USD |
1.9% |
||
|
23:01 |
GBP |
-29 |
||
|
Jun 29 |
29th-4th |
EUR |
0.6% |
|
|
6:45 |
EUR |
0.6% |
||
|
7:00 |
CHF |
0.81 |
||
|
8:00 |
EUR |
2.5% |
||
|
9:00 |
EUR |
2.4% |
||
|
12:30 |
USD |
0.1% |
||
|
12:30 |
USD |
0.3% |
||
|
13:45 |
USD |
52.7 |
||
|
13:55 |
USD |
74.1 |
Click here a current Gold Chart.
Originally posted here
