By FXEmpire.com

Analysis and Recommendations:

Gold added 5.75 in mid day trading to sell for 1608.90. Traders are hoping Fed Chairman Bernanke, will offer some guidance or hint of stimulus in his speech today on the economy. Although he is not expected to touch on the subject of the FOMC meeting, markets can only hope.

Also overall market sentiment has been pretty down, as Italian Prime Minister Monti warned of problems developing between governments under great deals of economic and political pressure.

Spain is expected to ask for a full bailout today and Greece is meeting with its creditors committee in hopes of finding a way to satisfy the troika and the ECB and avoid bankruptcy.

These pressures continue to weight on the markets and are supporting gold, as markets move back to safety, after their rush to risk assets on Friday after the positive jobs report from the US.

Investors are also focusing on inflation and trade balance data from China on Thursday and Friday respectively. The country’s central bank stated on Sunday that it will strengthen monetary policy modification and improve credit policy to accelerate the world’s fastest growing economy.

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 August 6, 2012 actual v. forecast

Date

Currency

Event

Actual

Forecast

Previous

Aug. 06

AUD

MI Inflation Gauge (MoM)

0.2%

-0.2%

TWD

Taiwanese CPI (YoY)

2.46%

2.02%

1.77%

AUD

ANZ Job Advertisements (MoM)

-0.80%

-1.10%

GBP

Halifax House Price Index (MoM)

-0.6%

-0.5%

0.8%

Upcoming Economic Events that affect the CHF, EUR, GBP and USD

Date

Time

Currency

Event

Previous

Aug 7

7:00

CHF

Foreign Currency Reserves

364.9B

7:15

CHF

CPI m/m

-0.3%

8:00

EUR

Italian Industrial Production m/m

0.8%

8:30

GBP

Manufacturing Production m/m

1.2%

10:00

EUR

German Factory Orders m/m

0.6%

14:00

GBP

NIESR GDP Estimate

-0.2%

Aug 8

5:45

CHF

SECO Consumer Climate

-8

9:30

GBP

BOE Inflation Report

10:00

EUR

German Industrial Production m/m

1.6%

12:30

USD

Prelim Nonfarm Productivity q/q

-0.9%

12:30

USD

Prelim Unit Labor Costs q/q

1.3%

14:30

USD

Crude Oil Inventories

Aug 9

8:00

EUR

ECB Monthly Bulletin

8:30

GBP

Trade Balance

-8.4B

12:30

USD

Trade Balance

-48.7B

12:30

USD

Unemployment Claims

Aug 10

6:45

EUR

French Industrial Production m/m

-1.9%

8:30

GBP

PPI Input m/m

-2.2%

12:30

USD

Import Prices m/m

-2.7%

18:00

USD

Federal Budget Balance

-59.7B

Government Bond Auctions

Date Time Country

Aug 07 00:30 Japan

Aug 07 09:15 Austria

Aug 07 14:30 UK

Aug 07 17:00 US

Aug 08 09:30 Germany

Aug 08 10:00 Norway

Aug 08 15:30 Italy

Aug 08 17:00 US

Aug 09 15:30 Italy

Aug 09 17:00 US

Aug 10 10:00 Belgium

Click here to read Gold Technical Analysis.

Originally posted here