By FXEmpire.com
Analysis and Recommendations:
Gold is trading at 1638.65
Gold prices traded steady, underpinned by signs of slowing economic growth across the globe and effectively growing hopes of quantitative easing in the world’s largest economy. On US employment front, the economy added just 115,000 jobs during April, well below the expectations of 170,000 and substantially lower than the addition of 154,000 jobs in March. On speculation front, CFTC reported that funds have raised bullish bets in gold by 8,462 contracts to 116,061 contracts.
Gold prices on the international markets declined more than 1 percent and touched a low of $1626/oz last week. Rising uncertainty with respect to global growth due to unfavorable economic data from the major economies and weak sentiments in the markets acted as a negative factor for gold prices. Additionally, strength in the US dollar index also exerted further downside pressure on the yellow metal prices. However, the yellow metal recovered most of its earlier losses in the later part of the week, as weak economic data from the US increased expectations that Federal Reserve may go for further monetary easing in order to accelerate the growth of the world’s largest economy which provided some support for gold prices at the end of the week.
Indian Finance Minister (FM) Pranab Mukherjee withdrew excise duty increase on all jewellery. This led gold prices to recover most of its earlier losses and to trade at $ 1638/oz. However, the government did not reverse its doubling of the import duty to 4 percent on gold. Strength in the US dollar and weak sentiments in the global markets stopped further gains in the yellow metal prices.
Economic Releases May 7, 2012 actual v. forecast
|
AUD |
Building Approvals (MoM) |
7.4% |
3.1% |
-8.8% |
|
AUD |
NAB Business Confidence |
4 |
3 |
|
|
AUD |
Retail Sales (MoM) |
0.9% |
0.2% |
0.3% |
|
CHF |
Unemployment Rate |
3.1% |
3.1% |
3.0% |
|
CHF |
CPI (MoM) |
0.1% |
0.2% |
0.6% |
|
EUR |
German Factory Orders (MoM) |
2.2% |
0.5% |
0.6% |
|
Building Permits (MoM) |
4.7% |
-1.5% |
7.6% |
Economic Events for May 8, 2012
00:01 GBP RICS House Price Balance -10% -10%
02:30 AUD Trade Balance -1.40B -0.48B
06:45 CHF GDP 0.1%
06:45 CHF SECO Consumer Climate -18 -19
13:15 CAD Housing Starts 202K 216K
Government Bond Auctions (this week)
Date Time Country
May 08 09:15 Austria
May 08 09:30 Belgium
May 08 14:30 UK
May 08 15:30 Italy
May 08 17:00 US
May 09 09:10 Sweden
May 09 09:30 Germany
May 09 09:30 Swiss
May 09 09:30 UK
May 09 14:30 Sweden
May 09 15:30 Italy
May 09 17:00 US
May 10 15:00 US
May 10 17:00 US
May 11 09:10 Italy BOT auction
May 11 10:00 Belgium
Click here a current Gold Chart.
Originally posted here
