By FX Empire.com
Economic Events: (GMT)
13:30 USD Core PCE Price Index (MoM)
13:30 USD Personal Spending (MoM)
The Core Personal Consumption spending (PCE) Price Index measures the changes in the price of goods and services purchased by consumers for the purpose of consumption, excluding food and energy. Prices are weighted according to total expenditure per item. It measures price change from the perspective of the consumer. It is a key way to measure changes in purchasing trends and inflation.
Personal Spending measures the change in the inflation-adjusted value of all spending by consumers. Consumer spending accounts for a majority of overall economic activity. However, this report tends to have a mild impact, as government data on retail sales is released about two weeks earlier.
A higher than expected reading should be taken as positive/bullish for the USD, while a lower than expected reading should be taken as negative/bearish for the USD.
Gold Fundamental Analysis Jan. 30, 2012, Forecast
Analysis and Recommendations:
Gold is trading at 1732.45 +5.75 (+0.33%)
The USD has be consistently falling since the Fed Statement on interest two days ago. Gold has surged as the dollar weakened. Investors already leary about the European Debt Crisis and the on going never ending saga in Greece, pulled the plug and headed for the safety of gold. Gold soared continously since the announcement.
Dipping as profts were being taken. Gold is up close to 85.00 per ounce since Wednesday. Gold futures are likely to test support at USD1,649.25 a troy ounce, Wednesday’s low, and resistance at USD1,734.05, an earlier Friday high.
Economic news in the US this week has been iffy, with unemployment claims increasing unexpectedly and housing starts plummetting well below forecast. Even though the Fed statement earlier this week supported slow growth and a turn around in the US, recent reports have investors worried, as the recovery seems lopsided. The Durable Goods report was above forecast which is good for manufacturing. But the most recent economic report was the U.S. gross domestic product which was lackluster, and cemented expectations that the dollar will remain weak, which was bullish for gold.
Gold should continue to rise even if there is an agreement reached this weekend in Athens, as Portugal is now making the news and will need to be rescued shortly, possibly before the deal with Athens is concluded
Originally posted here
