Gold Fundamental Analysis May 23, 2012, Forecast

By FXEmpire.com

Analysis and Recommendations:

Gold floundered around most of the day hovering at the 1580 price and is trading for 1584.15 at this time down 4.55.

Spot prices were almost inactive and the session ended with little changed at $1598 an ounce yesterday. Prices reacted quietly towards the news of the G8 leaders’ pledge to keep Greece in the Eurozone amid investors’ concerns over the European Union summit later this week. Investors and speculators will closely watch the outcome of the EU summit on which plans to resolve the region’s prevailing debt crisis will be discussed. At the same time, tomorrow’s informal EU summit will be closely watched by bullion traders to get cues on further directional moves. Dollar index seems steady while the Euro was trading weak after edging higher against the dollar in the last two sessions. However physical activities were slow as prices held up below the key level of $1600 an ounce.

The Organization for Economic Cooperation and Development (OECD) that the European debt crisis is risking the world economy, the IIF warned of bad debts mounting at Spanish banks and the IMF had harsh words for the EU leadership and the continued lack of a plan and protection from contagion.

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 22, 2012 actual v. forecast

Date	Time	Currency	Event	Actual	Forecast	Previous
May 22	04:00	NZD	Inflation Expectations (QoQ)	2.4%	2.5%
09:00	NOK	Norwegian GDP (QoQ)	1.4%	0.8%	0.6%
09:30	GBP	Core CPI (YoY)	2.1%	2.2%	2.5%
09:30	GBP	CPI (YoY)	3.0%	3.1%	3.5%
09:30	GBP	CPI (MoM)	0.6%	0.6%	0.3%

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

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

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Originally posted here