By FXEmpire.com
Analysis and Recommendations:
Gold is trading up for the day at 1572.55 adding 5.65. It spent most of the day looking for direction between small gains and small losses. There has been virtually no eco data available today.
Spot gold held steady near $1572 an ounce following a three percent slump in the previous week. The US Dollar held unfaltered while Euro reversed most of its gains in the previous session. Bullion investors worried about deflation after the reports on slowing global economic growth.
A decline in Euro zone economic activities; weakening Chinese manufacturing and slowing US factory growth indicate shrinking business activity around the globe. At the same time, Indian gold imports, one of the world’s top importing countries posted a contraction in the months of April and May compared with a year ago
Meanwhile, investors will keenly watch out the result of the key European Union summit this week in which easing the terms of Greek’s bailout is expected.
Comments from the ECB on future liquidity injections or changes in their collateral requirements will be important, but the overall expectations from the EU meetings this week will be ignored by the markets as not much is expected.
The focus this week is on the EU summit. The conclusion is unlikely to provide a long term European solution, like debt mutualization, as the hurdles are high. However leaders are likely to take significant steps taken towards: 1) a banking union, through deposit insurance, supervision and potentially a recapitalization fund and 2) growth measures, which could include the potential for infrastructure spending through project bonds. Last week’s announcement of a growth fund of EUR130bn or 1% of GDP with limited details over funding and implementation has done little to ease uncertainties.
As demands for action weigh on EU leaders, markets begin to lose confidence that this week’s EU summit will yield anything more than promises and small steps as it has in the past two years.
Greece has publically released their demands on the eurozone troika, included at additional 20billion euros, payment extensions and a change in the austerity agreements. This might have a great affect on the price of gold, as there is little change that the German leaders will accept these demands.
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 |
Event |
Previous |
|
Jun 26 |
8:30 |
GBP |
-18.8B |
|
|
13:00 |
USD |
-2.6% |
||
|
14:00 |
USD |
64.9 |
||
|
Jun 27 |
All Day |
EUR |
-0.2% |
|
|
8:30 |
GBP |
32.4K |
||
|
10:00 |
GBP |
21 |
||
|
12:30 |
USD |
0.2% |
||
|
14:00 |
USD |
-5.5% |
||
|
14:30 |
USD |
|||
|
Jun 28 |
7:55 |
EUR |
0K |
|
|
8:30 |
GBP |
-8.5B |
||
|
8:30 |
GBP |
|||
|
8:30 |
GBP |
-0.3% |
||
|
12:30 |
USD |
|||
|
12:30 |
USD |
1.9% |
||
|
23:01 |
GBP |
-29 |
||
|
Jun 29 |
29th-4th |
EUR |
0.6% |
|
|
6:45 |
EUR |
0.6% |
||
|
7:00 |
CHF |
0.81 |
||
|
8:00 |
EUR |
2.5% |
||
|
9:00 |
EUR |
2.4% |
||
|
12:30 |
USD |
0.1% |
||
|
12:30 |
USD |
0.3% |
||
|
13:45 |
USD |
52.7 |
||
|
13:55 |
USD |
74.1 |
Click here a current Gold Chart.
Originally posted here
