By FXEmpire.com
Introduction: Gold prices always rise when there is uncertainty in the global economy. In times of uncertainty, investors tend to run towards gold. Suppose, rumors are flying high about some event in the world and this is increasing the uncertainty in the financial markets.
- Gold reacts to uncertainty in the markets
- Gold reacts to the Federal Reserve and monetary policy
- A drop in major currencies can indicate a run into gold.
- Remember investors tend to take profit from gold so watch for trading opportunities when investors are taking profits, not moving out of the markets.
Weekly Analysis and Recommendations:
Gold continued to climb after a disappointing GDP release in the US.
|
Date |
Open |
High |
Change % |
||
|
Apr 27, 2012 |
1663.35 |
1657.25 |
1668.35 |
1651.15 |
0.36% |
|
Apr 26, 2012 |
1657.35 |
1644.05 |
1661.55 |
1643.15 |
0.82% |
|
Apr 25, 2012 |
1643.95 |
1642.35 |
1647.05 |
1625.55 |
0.09% |
|
Apr 24, 2012 |
1642.45 |
1637.45 |
1650.05 |
1634.75 |
0.30% |
|
Apr 23, 2012 |
1637.55 |
1643.45 |
1644.15 |
1623.95 |
-0.37% |
The U.S. economy slowed more than expected in the first quarter, the Commerce Department reported Friday. Real gross domestic product rose at a 2.2% annualized rate in the first quarter, down from a 3.0% increase in the fourth quarter.
UoM consumer sentiment rose unexpectedly last month, data showed on Friday.
In a report, the University of Michigan said that consumer sentiment rose to a seasonally adjusted 76.4, from 75.7 in the preceding month.
Analysts had expected UoM consumer sentiment to remain unchanged at 75.7 last month.
What’s more, a string of recent data suggesting some softening in the economy has raised concerns about whether the recovery will accelerate in the months ahead. A downturn in Europe could hurt U.S. exports, for instance, and higher gas prices could act as a drag.
A softer tone for the dollar was set Wednesday after the Federal Reserve kept interest rates on hold and Fed Chairman Ben Bernanke said he remained willing to buy more bonds should the economy need help.
The number of Americans who applied for jobless benefits remained elevated for the third straight week, suggesting some weakening in the U.S. labor market.
Jobless claims fell by 1,000 to a seasonally adjusted 388,000 in the week ended April 21, the U.S. Labor Department said Thursday. Claims from two weeks ago were revised up to 389,000 — the highest level since the first week of January.
Investors have begun to wonder if the US economy has hit a wall. This week’s ADP and Unemployment reports will be crucial.
Historical
High: 1916.20
Low: 1321.10
Economic Highlights of the coming week that affect the Euro, GBP, and Franc and USD
|
May 1 |
4:30am |
GBP |
Manufacturing PMI |
51.4 |
52.1 |
|
10:00am |
USD |
ISM Manufacturing PMI |
53.0 |
53.4 |
|
|
May 2 |
4:30am |
GBP |
Construction PMI |
54.2 |
56.7 |
|
8:15am |
USD |
ADP Non-Farm Employment Change |
179K |
209K |
|
|
May 3 |
4:30am |
GBP |
Services PMI |
54.6 |
55.3 |
|
7:45am |
EUR |
Minimum Bid Rate |
1.00% |
1.00% |
|
|
8:30am |
EUR |
ECB Press Conference |
|||
|
8:30am |
USD |
Unemployment Claims |
382K |
388K |
|
|
10:00am |
USD |
ISM Non-Manufacturing PMI |
55.5 |
56.0 |
|
|
May 4 |
8:30am |
USD |
Non-Farm Employment Change |
176K |
120K |
|
8:30am |
USD |
Unemployment Rate |
8.2% |
8.2% |
Originally posted here
