By FXEmpire.com
Analysis and Recommendations:
Gold declined again today, to trade at 1542.65 down 8.35. Gold prices in the international markets came under pressure and slipped more than 1 percent as strength in the DX coupled with mixed market sentiments added to pressure on prices. We may see a move up in gold on the negative housing data released today. Overall gold has been drifting aimlessly this week.
Latest data also suggested that the demand scenario in India is not very supportive. Gold imports in India declined by 32.4 percent in 2011-12 and stood at 655 tonnes from 969 tonnes a year ago. Also imports declined in Q1 of 2012 by 68 percent to 90 tonnes compared to 283 tonnes in Q4 of 2011.
Intensifying concerns over Spain’s debt dampened the market sentiments, sending commodities and equities down. Euro hit a 23 month low after Spanish bond yields increased, raising worries that it may spiral up to unsustainable levels. Spot gold hit a one week low earlier today stretching the previous session’s steep decline, tracking weakness in euro. In the MCX, however, gold was moving in the tight ranges. Market was waiting for fresh cues for further directional moves. Base metal complex in LME as well as in Shanghai were in red. Base metals in LME dropped more than one per cent except for nickel and aluminum. China indicating that it was unlikely to provide a massive stimulus measures to prop up economic growth weighed on the market too amid lingering concerns over euro zone debt crisis.
A rise in Spanish bonds yields fueled worries that it may spiral up to unsustainable levels, adding further to woes in Euro Zone. China’s comments over its proposed stimulus package to bolster economic growth hurt the investor sentiments further. As the week progresses, the coming days are expected to be more action packed with slew of economic data set to be released especially from the US including non-farm payrolls.
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 |
Previous |
|
|
May 31 |
5:45 |
CHF |
GDP q/q |
0.1% |
|
31st-3rd |
EUR |
German Retail Sales m/m |
0.8% |
|
|
6:45 |
EUR |
French Consumer Spending m/m |
-2.9% |
|
|
7:55 |
EUR |
German Unemployment Change |
19K |
|
|
9:00 |
EUR |
CPI Flash Est?mate y/y |
2.6% |
|
|
12:15 |
USD |
ADP Non-Farm Employment Change |
119K |
|
|
12:30 |
USD |
Prelim GDP q/q |
2.2% |
|
|
12:30 |
USD |
Unemployment Claims |
370K |
|
|
13:45 |
USD |
Chicago PMI |
56.2 |
|
|
15:00 |
USD |
Crude Oil Inventories |
0.9M |
|
|
Jun 1 |
TBD |
GBP |
Halifax HPI m/m |
|
|
7:15 |
CHF |
Retail Sales y/y |
4.2% |
|
|
7:30 |
CHF |
SVME PMI |
46.9 |
|
|
7:45 |
EUR |
Italian Manufacturing PMI |
43.8 |
|
|
8:30 |
GBP |
Manufacturing PMI |
50.5 |
|
|
9:00 |
EUR |
Unemployment Rate |
10.9% |
|
|
12:30 |
USD |
Non-Farm Employment Change |
115K |
|
|
12:30 |
USD |
Unemployment Rate |
8.1% |
|
|
12:30 |
USD |
Core PCE Price Index m/m |
0.0% |
|
|
12:30 |
USD |
Personal Spending m/m |
0.2% |
|
|
12:30 |
USD |
ISM Manufacturing PMI |
0.3% |
|
|
14:00 |
USD |
S&P/CS Composite-20 HPI y/y |
54.8 |
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Originally posted here
