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 made a miraculous recovery this week, after continuously falling over the past few weeks, it looked like gold would not get a chance to recover. With risk aversion and flights to safety the main concerns of the market pushing the USD to record highs, gold was left out of the safe haven choices.
|
Date |
Open |
High |
Change % |
||
|
Jun 01, 2012 |
1625.65 |
1562.05 |
1631.25 |
1546.35 |
4.06% |
|
May 31, 2012 |
1562.25 |
1565.75 |
1574.05 |
1553.65 |
-0.23% |
|
May 30, 2012 |
1565.85 |
1554.55 |
1570.85 |
1532.55 |
0.72% |
|
May 29, 2012 |
1554.65 |
1576.55 |
1584.45 |
1549.85 |
-1.41% |
|
May 28, 2012 |
1576.85 |
1576.05 |
1585.65 |
1574.45 |
0.04% |
The impact of the dramatic combination of an escalation in the European crisis combined with a dampening in global growth prospects drove risk aversion and pushed the USD higher and higher, until Friday’s disappointing Nonfarm data, changed investors sentiment. With the possibility of more Fed intervention required to stimulate the US sagging economy and stopping the annual spring stall, speculators quickly moved from the USD to gold, pushing gold up 4.06% in a single day. We should see gold keep at these levels while risk aversion remains the theme.
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.
Historical
Highest: 1921.05 on Sep 06, 2011
Average: 1418.48 over this period
Lowest: 1026.95 on Oct 28, 2009
Economic Highlights of the coming week that affect the Euro, GBP, CHF and the USD
|
Date |
Time |
Currency |
Forecast |
Previous |
|
Jun 5 |
9:00 |
EUR |
Retail Sales m/m |
0.3% |
|
10:00 |
EUR |
German Factory Orders m/m |
2.2% |
|
|
14:00 |
USD |
ISM Non-Manufacturing PMI |
53.5 |
|
|
Jun 6 |
6th-8th |
GBP |
Halifax HPI m/m |
|
|
8:30 |
GBP |
Construction PMI |
55.8 |
|
|
10:00 |
EUR |
German Industrial Production m/m |
2.8% |
|
|
12:30 |
EUR |
ECB Press Conference |
||
|
12:30 |
USD |
Revised Nonfarm Productivity q/q |
-0.5% |
|
|
14:30 |
USD |
Crude Oil Inventories |
||
|
18:00 |
USD |
Beige Book |
||
|
23:01 |
GBP |
BRC Retail Sales Monitor y/y |
-3.3% |
|
|
Jun 7 |
7:00 |
CHF |
Foreign Currency Reserves |
235.6B |
|
7:15 |
CHF |
CPI m/m |
0.1% |
|
|
8:30 |
GBP |
Services PMI |
53.3 |
|
|
11:00 |
GBP |
Asset Purchase Facility |
325B |
|
|
11:00 |
GBP |
Official Bank Rate |
0.50% |
0.50% |
|
TBD |
GBP |
MPC Rate Statement |
||
|
12:30 |
USD |
Unemployment Claims |
383K |
|
|
14:00 |
USD |
Fed Chairman Bernanke Testifies |
||
|
Jun 8 |
8:30 |
GBP |
PPI Input m/m |
-1.5% |
|
8:30 |
GBP |
Consumer Inflation Expectations |
3.5% |
|
|
12:30 |
USD |
Trade Balance |
-51.8B |
|
|
14:00 |
USD |
Fed Chairman Bernanke Testifies |
Click here a current Gold Chart.
Originally posted here
