By FXEmpire.com
Outlook and Recommendation
Gold closed the month at 1562.25 an ounce as expectations of an Irish vote in favor of Europe’s fiscal pact lifted the euro, but this month’s sharp drop in the single currency kept the metal on track for its worst May performance in 30 years.
Concerns over Spain’s banking system, a surge in Italian borrowing costs and Greek elections that may determine whether it stays in the euro zone have sent investors fleeing to the safety of the dollar this month.
As well as being caught in the broader market sell-off, gold is particularly sensitive to gains in the dollar, which can dent gold’s appeal as an alternative asset.
The precious metal is down more than 6 percent so far this month, its biggest May loss since a near 10 percent fall in 1982. The metal is also set to post a fourth consecutive monthly loss for the first time since January 2000.
While the possibility of a fresh round of monetary easing in the United States and demand for alternatives to the beleaguered euro could lift gold, confidence in the metal remains weak.
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.
Central Bank Name: Fed Reserve
Date of next meeting or last meeting: Jun 20
Current Rate: 0-0.25 % (- 0.75)
Statement highlights of last meeting: To support a stronger economic recovery and to help ensure that inflation, over time, is at the rate most consistent with its dual mandate, the Committee expects to maintain a highly accommodative stance for monetary policy. In particular, the Committee decided today to keep the target range for the federal funds rate at 0 to 1/4 percent and currently anticipates that economic conditions-including low rates of resource utilization and a subdued outlook for inflation over the medium run-are likely to warrant exceptionally low levels for the federal funds rate at least through late 2014.
Historical
Highest: 1921.05 on Sep 06, 2011
Average: 1418.48 over this period
Lowest: 1026.95 on Oct 28, 2009
Economic events for the month of June affecting EUR, CHF, GBP and USD
|
Time |
Cur. |
Event |
Forecast |
Previous |
||||
|
Friday, June 01 |
||||||||
|
12:30 |
USD |
8.1% |
8.1% |
|||||
|
12:30 |
USD |
150K |
115K |
|||||
|
14:00 |
USD |
53.9 |
54.8 |
|||||
|
Wednesday, June 06 |
||||||||
|
11:45 |
EUR |
1.00% |
1.00% |
|||||
|
Thursday, June 07 |
||||||||
|
11:00 |
GBP |
0.50% |
||||||
|
Thursday, June 14 |
||||||||
|
07:30 |
CHF |
0.25% |
||||||
|
Wednesday, June 20 |
||||||||
|
08:30 |
GBP |
-13.7K |
||||||
|
Thursday, June 21 |
||||||||
|
08:30 |
GBP |
-1.1% |
||||||
|
08:30 |
GBP |
-2.3% |
||||||
Click here for further Gold Forecast.
Originally posted here
