By FXEmpire.com

Analysis and Recommendations:

Gold broke the down streak to move up in today’s session to end the week at 1590.15 up 15.25.

Spot gold rebounded on heavy trades yesterday, reversing the previous session’s losses, and posted its biggest daily gain in more than three months. Technical buying, option expiry in COMEX futures and weak US manufacturing figures prompted bargain hunting in gold despite the Euro remaining weak. Rating agency Moody’s, downgrading of 16 Spanish banks and Fitch’s downgrading of Greek sovereign rating yesterday, weighed on bullion prices too. The Euro continued its weakness, floating near a four month low against the dollar, owing to Greece’s possible exit from the Euro zone and concerns over Spanish banks. At the same time physical demand for bullion seems lackluster, due to heavy selling from investors and speculators.

Global market sentiments are mixed as we approach the end of the week. Heightening European economic concerns along with strength in the US Dollar Index is expected to act as a negative factor for dollar-denominated commodities.

But Gold is expected to witness upside today as rise in economic woes could lead to revival in demand for gold as a safe-haven investment. In the near-term too, gold is expected to trade on a positive note.

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

Eco Data for May 18, 2012 actual v. forecast

May 18

13:30

CAD

Core CPI (MoM)

0.4%

0.3%

0.3%

13:30

CAD

CPI (MoM)

0.4%

0.3%

0.4%

13:30

CAD

CPI (YoY)

2.0%

2.0%

1.9%

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

May 21

5:45

CHF

SECO Consumer Climate

-18

-19

May 22

8:30

GBP

CPI y/y

3.5%

8:30

GBP

Public Sector Net Borrowing

15.9B

8:30

GBP

RPI y/y

3.6%

TBD

GBP

BOE Inflation Letter

14:00

USD

Existing Home Sales

4.48M

May 23

8:00

EUR

Current Account

-1.3B

8:30

GBP

MPC Meeting Minutes

0-0-9

TBD

EUR

Industrial New Orders m/m

-1.2%

10:00

GBP

CBI Industrial Order Expectations

-8

TBD

GBP

Inflation Report Hearings

14:00

USD

New Home Sales

328K

14:30

USD

Crude Oil Inventories

May 24

6:00

CHF

Trade Balance

1.69B

7:00

EUR

French Flash Manufacturing PMI

46.9

7:00

EUR

French Flash Services PMI

45.2

7:30

EUR

German Flash Manufacturing PMI

46.2

7:30

EUR

German Flash Services PMI

52.2

8:00

EUR

German Ifo Business Climate

109.9

8:00

EUR

Flash Manufacturing PMI

45.9

8:00

EUR

Flash Services PMI

46.9

8:30

GBP

Retail Sales m/m

1.8%

8:30

GBP

Revised GDP q/q

-0.2%

8:30

GBP

BBA Mortgage Approvals

31.9K

8:30

GBP

Prelim Business Investment q/q

-3.3%

12:30

USD

Unemployment Claims

12:30

USD

Durable Goods Orders m/m

-4.0%

13:00

EUR

Belgium NBB Business Climate

-10.7

May 25

6:00

EUR

GfK German Consumer Climate

5.6

7:15

CHF

Employment Level

4.04M

TBD

ALL

G8 Meetings

13:55

USD

Revised UoM Consumer Sentiment

Government Bond Auctions (this week)

Date Time Country

May 21 09:10 Norway

May 21 09:30 Germany

May 21 10:00 Belgium

May 22 08:30 Holland

May 22 08:30 Spain

May 22 17:00 US

May 23 09:10 Sweden

May 23 09:30 Germany

May 23 14:30 Sweden

May 23 17:00 US

May 24 15:30 Italy

May 24 17:00 US

May 25 15:30 Italy

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Originally posted here