Gold Fundamental Analysis May 22, 2012, Forecast

By FXEmpire.com

Analysis and Recommendations:

Gold is trading at 1591.55 down 0.35. Gold moderately gained and but could not break the 1600 price and fell back to the 1590 range.. The Euro rose against the dollar from its lowest levels since January after tracking encouraging comments from the world leaders in the G8 meeting last weekend. G8 leaders during their Saturday meeting have pledged that they will keep Greece in the Euro zone. As per CFTC data, traders raised their net short position in gold by 46 percent in the last week, the highest level since September 2008. The Report also showed that traders reduced their long bets in gold to the lowest level seen in January 2008. Meanwhile, the exchange traded gold funds are inching up from its 3 1/2 month low hit last week. Activities in the physical markets seem silent as prices seem reversing from its multi-month lows.

The overall markets were quiet around the world today, Asia was a bit choppy in early trading but most of the day was quiet, with little in the way of eco data and a hush from the EU, things remained steady for commodities and currencies.

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 May 21, 2012 actual v. forecast

Date	Time	Currency	Importance	Event	Actual	Forecast	Previous
May 21	00:01	GBP	Rightmove House Price Index (MoM)	0.0%	2.9%
06:45	CHF	SECO Consumer Climate	-8	-15	-19

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

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

Click here to read Gold Technical Analysis.

Originally posted here