Gold Fundamental Analysis March 9, 2012, Forecast
Analysis and Recommendations:
Gold rose for two back to back sessions, moving with the flow, as the market sentiment shifted to positive that the Greece will be able to go through with its bond swap and its debt crisis would be a step closer to a resolution. Gold pushed up $14.80, or 0.9%, to settle at $1,698.70. The USD was down against all of its trading partners, and as the adage says, USD down, Gold Up.
March 8, 2012 Economic Releases actual v. forecast
|
AUD |
Employment Change |
-15.4K |
5.0K |
46.2K |
|
AUD |
Unemployment Rate |
5.2% |
5.2% |
5.1% |
|
KRW |
South Korean Interest Rate Decision |
3.25% |
3.25% |
3.25% |
|
EUR |
French Non-Farm Payrolls (QoQ) |
-0.1% |
-0.1% |
-0.2% |
|
CHF |
CPI (MoM) |
0.3% |
0.2% |
-0.4% |
|
GBP |
Interest Rate Decision |
0.50% |
0.50% |
0.50% |
|
EUR |
Interest Rate Decision |
1.00% |
1.00% |
1.00% |
|
Housing Starts |
201K |
199K |
198K |
|
|
USD |
Initial Jobless Claims |
362K |
350K |
354K |
|
USD |
Continuing Jobless Claims |
3416K |
3385K |
3406K |
In America:
U.S. employers announced workforce reductions totaling 51,728 during February, down 3.3% from January levels, according to the latest job-cut report released Thursday by global outplacement firm Challenger.
Jobless claims in the U.S. rose to the highest level in five weeks, climbing by 8,000 to a seasonally adjusted 362,000, the Labor Department said Thursday. Markets had estimated claims would rise to 355,000 in the week ended March 3. Continuing claims – payments to people already approved for jobless benefits – increased by 10,000 to a seasonally adjusted 3.42 million in the week ended Feb. 25.
The Fed is considering a new form of “sterilized” quantitative easing that would allow asset purchases despite high oil prices, according to a report in The Wall Street Journal.
In northern America, the Canadian Central Bank held rates today at 1% following the lead of banks around the world.
In Europe:
The Bank of England announced their current rate decision which was as expected to hold rates. No new additions to their monetary easing policies announced in February.
The European Central Bank committee held lending rates at the current rate of 1% and made no comments on any additional lending policies.
ECB President Draghi said in his monthly press conference in Frankfurt on Thursday that the central bank’s long-term refinancing operation, has had a positive effect on markets and sentiment in the euro zone but that “all non-standard measures are temporary.” He also said that the three-year LTROs have been an “unquestionable success.”
Prices for Italian government bonds jumped and Spanish bonds also rose Thursday, sending yields lower on expectations Greece will successfully complete its voluntary debt swap with private investors. Italy’s 10-year bond yield fell 0.20
Investors holding around 60% of eligible Greek government bonds have indicated so far they will participate in a massive debt swap, Bloomberg reported Thursday. That puts the country nearer to completion of a major sovereign restructuring
Originally posted here
