By FXEmpire.com
Analysis and Recommendations:
Gold plummeted today, dropping by 37.25 to change hands at 1539.35.
Gold retreated for a second day as concern that Greece may leave the euro region strengthened the dollar, trimming demand for alternative investments. Silver, platinum and palladium declined. Spot gold fell as much as 0.9 percent after declining yesterday by the most in two weeks. Holdings in exchange-traded products shrank for the first time in four days to 2,383.967 metric tons.
European leaders are meeting today to discuss the region’s debt crisis that has wiped more than $4 trillion from equity markets worldwide this month. The dollar climbed to a 20- month high against a six-currency basket including the euro. June-delivery bullion fell for a third day on the Comex in New York, dropping as much as 1.4 percent to $1,540 an ounce and last trading at $1,539.35. Asian stocks and commodities including oil and copper retreated before European Union leaders gather in Brussels to discuss how to revive growth. Cash silver lost as much as 1.7 percent to $27.7175 an ounce and was last at $27.7825, extending the 1.9 percent drop in past two days
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 for May 23, 2012 actual v. forecast
|
Date |
Currency |
Event |
Actual |
Forecast |
Previous |
|
May 23 |
JPY |
Trade Balance |
-0.48T |
-0.60T |
-0.62T |
|
JPY |
Interest Rate Decision |
0.10% |
0.10% |
0.10% |
|
|
GBP |
Retail Sales (MoM) |
-2.3% |
-0.8% |
2.0% |
|
|
GBP |
Retail Sales (YoY) |
-1.1% |
1.0% |
3.1% |
|
|
EUR |
Industrial New Orders (MoM) |
1.8% |
-0.1% |
-1.2% |
|
|
GBP |
CBI Industrial Trends Orders |
-17 |
-10 |
-8 |
|
|
Core Retail Sales (MoM) |
0.1% |
1.0% |
0.4% |
||
|
CAD |
Leading Indicators (MoM) |
0.3% |
0.3% |
0.3% |
|
|
CAD |
Retail Sales (MoM) |
0.4% |
0.4% |
-0.2% |
|
|
USD |
New Home Sales |
343K |
335K |
332K |
Just a heads up since gold is volatile and will react to most economic indicators we will begin to post the daily calendar with events that could affect the price of gold. The gold price is sensitive to a number of scheduled U.S. and Euro area macroeconomic announcements–including retail sales, non-farm payrolls, and inflation. Gold’s high sensitivity to real interest rates and its unique role as a safe-haven and store of value typically leads to a counter-cyclical reaction to surprise news, in contrast to their commodities. It also shows a particularly high sensitivity to negative surprises that might lead financial investors to become more risk averse.
These results have a number of implications. To reduce the uncertainty of the return on gold transactions, traders may wish to time their orders flow so as to avoid the release of information that has been shown to affect prices. For longer-term market participants, these results provide confirmation of the pro-cyclical bias of many commodities and gold’s role as a safe-haven during periods of economic uncertainty.
Upcoming Economic Events that affect the CHF, EUR, GBP and USD
|
May 24 |
6:00 |
CHF |
1.69B |
|
|
7:00 |
EUR |
46.9 |
||
|
7:00 |
EUR |
45.2 |
||
|
7:30 |
EUR |
46.2 |
||
|
7:30 |
EUR |
52.2 |
||
|
8:00 |
EUR |
109.9 |
||
|
8:00 |
EUR |
45.9 |
||
|
8:00 |
EUR |
46.9 |
||
|
8:30 |
GBP |
1.8% |
||
|
8:30 |
GBP |
-0.2% |
||
|
8:30 |
GBP |
31.9K |
||
|
8:30 |
GBP |
-3.3% |
||
|
12:30 |
USD |
|||
|
12:30 |
USD |
-4.0% |
||
|
13:00 |
EUR |
-10.7 |
||
|
May 25 |
6:00 |
EUR |
5.6 |
|
|
7:15 |
CHF |
4.04M |
||
|
TBD |
ALL |
|||
|
13:55 |
USD |
Click here for updated Gold News.
Originally posted here
