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 had a directionless week, ending the week at 1615.75 in a lower range that it had traded the beginning of the week. Prices opened on Monday at 1621 and hit a high of 1626, whereas on Friday, prices opened at 1615.35 and only hit a high of 1620.05.
Traders vacillated between positive hopes and dashed dream of Fed monetary stimulus as each eco data report was released. After a huge jump in retail sales hopes faded, but mid week after a round of negative data hopes reappeared and then on Thursday as traders saw positive results in unemployment and housing data, dreams we dashed once again.
|
Date |
Open |
High |
Low |
Change % |
|
|
Aug 17, 2012 |
1615.75 |
1615.35 |
1620.05 |
1611.85 |
0.02% |
|
Aug 16, 2012 |
1615.45 |
1604.25 |
1618.65 |
1601.05 |
0.70% |
|
Aug 15, 2012 |
1604.15 |
1600.35 |
1606.55 |
1590.25 |
0.22% |
|
Aug 14, 2012 |
1600.65 |
1610.95 |
1616.75 |
1593.95 |
-0.65% |
|
Aug 13, 2012 |
1611.05 |
1621.65 |
1626.05 |
1607.85 |
-0.66% |
FxEmpire provides in-depth analysis for each currency and commodity we review. Fundamental analysis is provided in three components. We provide a detailed monthlyanalysis and forecast at the beginning of each month. Then we provide more recent analysis and information in our weekly reports and we provide daily updates and outlooks.
Major Economic Events for the week of August 13-17, 2012 actual v. forecast for Euro, GPB, the Franc, and USD
|
Date |
Time |
Currency |
Event |
Actual |
Forecast |
Previous |
|
Aug 14 |
8:30 |
GBP |
CPI y/y |
2.6% |
2.3% |
2.4% |
|
9:00 |
EUR |
German ZEW Economic Sentiment |
-25.5 |
-19.4 |
-19.6 |
|
|
12:30 |
USD |
Core Retail Sales m/m |
0.8% |
0.4% |
-0.8% |
|
|
12:30 |
USD |
PPI m/m |
0.3% |
0.3% |
0.1% |
|
|
12:30 |
USD |
Retail Sales m/m |
0.8% |
0.3% |
-0.7% |
|
|
Aug 15 |
8:30 |
GBP |
Claimant Count Change |
-5.9K |
6.2K |
1.0K |
|
8:30 |
GBP |
MPC Meeting Minutes |
0-0-9 |
0-0-9 |
0-0-9 |
|
|
12:30 |
USD |
Core CPI m/m |
0.1% |
0.2% |
0.2% |
|
|
Aug 16 |
8:30 |
GBP |
Retail Sales m/m |
0.3% |
0.0% |
0.8% |
|
12:30 |
USD |
Building Permits |
0.81M |
0.77M |
0.76M |
|
|
12:30 |
USD |
Unemployment Claims |
366K |
365K |
364K |
|
|
14:00 |
USD |
Philly Fed Manufacturing Index |
-7.1 |
-4.7 |
-12.9 |
|
|
Aug 17 |
13:55 |
USD |
Prelim UoM Consumer Sentiment |
73.6 |
72.5 |
72.3 |
Historical: From 2010 to present
Highest: 1921.05 on Sep 06, 2011
Average: 1457.33 over this period
Lowest: 1044.85 on Feb 05, 2010
Economic Highlights of the coming week that affect the Euro, GBP, CHF and the USD
|
Date |
Time |
Currency |
Event |
Previous |
|
Aug 21 |
8:30 |
GBP |
Public Sector Net Borrowing |
12.1B |
|
10:00 |
GBP |
CBI Industrial Order Expectations |
-6 |
|
|
Aug 22 |
14:00 |
USD |
Existing Home Sales |
4.37M |
|
14:30 |
USD |
Crude Oil Inventories |
-3.7M |
|
|
18:00 |
USD |
FOMC Meeting Minutes |
||
|
Aug 23 |
6:00 |
CHF |
Trade Balance |
2.25B |
|
7:00 |
EUR |
French Flash Manufacturing PMI |
43.4 |
|
|
7:00 |
EUR |
French Flash Services PMI |
50.0 |
|
|
7:30 |
EUR |
German Flash Manufacturing PMI |
43.0 |
|
|
7:30 |
EUR |
German Flash Services PMI |
50.3 |
|
|
8:00 |
EUR |
Flash Manufacturing PMI |
44.0 |
|
|
8:00 |
EUR |
Flash Services PMI |
47.9 |
|
|
8:30 |
GBP |
BBA Mortgage Approvals |
26.3K |
|
|
10:00 |
GBP |
CBI Realized Sales |
11 |
|
|
12:30 |
USD |
Unemployment Claims |
366K |
|
|
13:00 |
USD |
Flash Manufacturing PMI |
51.4 |
|
|
14:00 |
USD |
New Home Sales |
350K |
|
|
Aug 24 |
8:30 |
GBP |
Revised GDP q/q |
-0.7% |
|
8:30 |
GBP |
Prelim Business Investment q/q |
1.9% |
|
|
12:30 |
USD |
Core Durable Goods Orders m/m |
-1.1% |
|
|
12:30 |
USD |
Durable Goods Orders m/m |
1.6% |
|
|
13:00 |
EUR |
Belgium NBB Business Climate |
-11.3 |
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Originally posted here
