By FXEmpire.com
Analysis and Recommendations:
Gold is trading at 1566.35 down 8.55 as it continues on the pre FOMC trend to the 1520 price level.
Gold declined for the second day amid signs that Europe’s crisis is intensifying. Spanish and Italian borrowing costs rose at debt sales amid concern that a European Union summit this week will fail to solve the sovereign debt crisis. The precious metal has tumbled 5.8 percent this quarter, heading for the biggest such loss since 2004, as investors favored the dollar as a haven investment. The greenback was up 6.7 percent against the euro this quarter through yesterday.
Gold futures for August delivery fell over 0.5 percent to settle at $1,566.35 an ounce. on the Comex in New York. The metal is still up this year after 11 consecutive annual increases. Holdings in gold-backed exchange- traded products increased 38.7 metric tons this month, the most since November, and are within 0.1 percent of the all-time high set in March, data compiled by Bloomberg show.
Russia’s bullion reserves climbed 15.5 tons to 911.3 tons last month, the highest since at least 1993, data on the International Monetary Fund’s website showed. Turkey, Ukraine and Kazakhstan also boosted holdings, the data show. Silver futures for September delivery fell 1.8 percent to $27.103 an ounce on the Comex, extending this quarter’s drop to 17 percent.
Uncertainty and cynicism prevailed in the market ahead of the two day European Union summit starting tomorrow in Brussels. Commodities were in the negative territory as investors grew pessimistic over the success of the upcoming EU summit to tackle the long running debt crisis in Euro Zone. Precious metals declined as deflation worries gripped the market. While investors await the outcome of the EU summit, spot gold dropped, erasing the initial gains. However, trading remained subdued in the physical market.
Sentiments were weak in the base metal segment. Escalating worries over the euro zone debt contagion pressurized metals to move south. In LME, zinc was the worst performer, dropping more than one per cent followed by lead, copper and nickel. Aluminum was hovering near its lowest in two years while zinc hit its lowest since October
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 Releases for June 26, 2012 actual v. forecast
|
Date |
Currency |
Event |
Actual |
Forecast |
Previous |
||
|
Jun. 27 |
EUR |
German Import Price Index (MoM) |
-0.7% |
-0.7% |
-0.5% |
||
|
EUR |
Spanish Retail Sales (YoY) |
-4.9% |
-8.2% |
-10.0% |
|||
|
EUR |
Italian Business Confidence |
88.9 |
85.5 |
86.6 |
|||
|
NOK |
Norwegian Unemployment Rate |
3.00% |
3.00% |
3.00% |
|||
|
GBP |
BBA Mortgage Approvals |
30.2K |
32.8K |
32.1K |
|||
|
EUR |
Italian 6-Month BOT Auction |
2.957% |
2.104% |
||||
|
GBP |
CBI Distributive Trades Survey |
42 |
10 |
21 |
|||
|
USD |
MBA Mortgage Applications |
-7.1% |
-0.8% |
||||
|
EUR |
German CPI (MoM) |
-0.1% |
0.0% |
-0.2% |
|||
|
EUR |
German CPI (YoY) |
1.7% |
1.8% |
1.9% |
|||
|
USD |
Core Durable Goods Orders (MoM) |
0.4% |
0.7% |
-0.6% |
|||
|
USD |
Durable Goods Orders (MoM) |
1.1% |
0.4% |
-0.2% |
|||
Upcoming Economic Events that affect the CHF, EUR, GBP and USD
|
Date |
Time |
Currency |
Event |
Previous |
|
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 |
Upcoming Government Bond Auctions
Date Time Country
Jun 28 09:10 Italy
Jun 28 17:00 US
Click here to read Gold Technical Analysis.
Originally posted here
