By FXEmpire.com
Gold Fundamental Analysis April 2, 2012, Forecast
Analysis and Recommendations:
Gold moved back up 16.55 in today’s session, trading for 1671.45 to make up some of Thursday’s losses.
Speculators moved back to gold ahead of end of the quarter Gold futures elevated boosted by a weaker U.S. dollar as euro-zone finance ministers boost the region’s firewall against the spread of the sovereign-debt crisis. For the quarter, gold futures are on track for a gain of more than 6.%
Euro-zone finance ministers meeting in Copenhagen on Friday agreed to temporarily boost the size of the firewall designed to contain the spread of the region’s debt crisis to 800 billion euros ($1.1 trillion) from a previously planned 500 billion euros.
The dollar fell today, making gold an attractive buy, as gold had dropped the prior day, so buyers could use cheaper USD to buy gold at a depressed price. A weaker dollar tends to boost dollar-denominated commodities as it makes them cheaper for holders of other currencies.
Economic Reports March 30, 2012 actual v. forecast
|
JPY |
Unemployment Rate |
4.5% |
4.6% |
4.6% |
|
JPY |
Tokyo Core CPI (YoY) |
-0.3% |
-0.3% |
-0.3% |
|
JPY |
Industrial Production (MoM) |
1.9% |
1.4% |
1.9% |
|
AUD |
HIA New Home Sales (MoM) |
3.0% |
-7.3% |
|
|
EUR |
French Consumer Spending (MoM) |
3.0% |
0.2% |
-0.4% |
|
CHF |
KOF Leading Indicators |
0.08 |
0.08 |
-0.11 |
|
NOK |
Norwegian Retail Sales (MoM) |
1.00% |
-0.50% |
1.10% |
|
EUR |
CPI (YoY) |
2.6% |
2.5% |
2.7% |
|
EUR |
Greek Retail Sales (YoY) |
-10.30% |
-12.60% |
|
|
USD |
Core PCE Price Index (MoM) |
0.1% |
0.1% |
0.2% |
|
GDP (MoM) |
0.1% |
0.1% |
0.5% |
|
|
USD |
Personal Spending (MoM) |
0.8% |
0.6% |
0.4% |
|
USD |
Chicago PMI |
62.2 |
63.1 |
64.0 |
|
USD |
Michigan Consumer Sentiment Index |
76.2 |
75.1 |
74.3 |
Economic Events for Monday, April 2, 2012 Europe and America
08:15 CHF Retail Sales (YoY)
Retail Sales measure the change in the total value of inflation-adjusted sales at the retail level. It is the foremost indicator of consumer spending, which accounts for the majority of overall economic activity.
08:30 CHF SVME PMI
08:50 EUR French Manufacturing PMI
08:55 EUR German Manufacturing PMI
09:00 EUR Manufacturing PMI
09:30 GBP Manufacturing PMI
Manufacturing Purchasing Managers Index (PMI) measures the activity level of purchasing managers in the manufacturing sector. A reading above 50 indicates expansion in the sector; a reading below 50 indicates contraction. Traders watch these surveys closely as purchasing managers usually have early access to data about their company’s performance, which can be a leading indicator of overall economic performance.
10:00 EUR Unemployment Rate
The Unemployment Rate measures the percentage of the total work force that is unemployed and actively seeking employment during the previous month. The data tends to have a muted impact as there are several earlier indicators related to labor conditions in the euro zone.
15:00 USD ISM Manufacturing Index
The Institute of Supply Management (ISM) Manufacturing Purchasing Managers Index (PMI) rates the relative level of business conditions including employment, production, new orders, prices, supplier deliveries, and inventories.
The data is compiled from a survey of approximately 400 purchasing managers in the manufacturing industry.
On the index, a level above 50.0 indicates industry expansion, below indicates contraction.
Government Bond Auctions (this week)
Apr 03 09:30 Belgium Auctions 3 & 6M T-bills
Apr 03 09:30 UK Conventional Gilt Auction
Apr 04 08:30 Spain Bono auction
Apr 04 14:30 Sweden Details T-bill auction on Apr 11
Apr 05 08:50 France OAT auction
Apr 05 15:00 US Announces auctions
Apr 05 15:30 Italy Details BOT on Apr 11 & BTP/CCTeu on Apr 12
Originally posted here
