Gold Fundamental Analysis August 27, 2012, Forecast

Get Forex buy/sell signals directly to your email and by SMS.
To learn more click here

Analysis and Recommendations:

Gold spent the day directionless meandering between small gains and losses, taking a breather from a hard week. Prices are modestly lower in early U.S. trading Friday, on some profit-taking pressure from this week’s strong price gains. The key markets are also in a bearish posture for the precious metals early Friday, as the U.S. dollar index is higher and crude oil prices are weaker. Still, it’s been a good week for the gold and silver market bulls. December gold last traded down $5.60 at $1,667.20 an ounce. Spot gold was last quoted down $6.20 an ounce at $1,665.50.  September Comex silver last traded down $0.141 at $30.315 an ounce. The US dollar strengthened after a positive Durable Goods print, which surprised markets.

In overnight news, European stocks were slightly lower as European traders were awaiting the results of a meeting between German Chancellor Angela Merkel and Greek Prime Minister Samaras, regarding Greece’s financial woes. The tensions between Iran and the U.S./Israel are building, which could be adding to the heightened risk aversion in the market place this week. Safe-haven buying interest has resurfaced in the gold market, and even in the silver market, this week. Many traders are already looking ahead to next week’s U.S. Federal Reserve symposium in Jackson Hole, Wyoming, and the September 6 monthly meeting of the European Central Bank.

After showcasing an impressive rally the previous day, precious metals and base metals eased earlier today as optimism over monetary stimulus by the Fed waned. However, commodities were seen paring the losses by afternoon as the markets await the outcome of the meeting between German Chancellor and Greek Prime Minister. The yellow metal softened from its four-and-a-half month high, yet, it was heading to post the biggest weekly gain in more than two months. Meanwhile, spot silver was probably on its course to register its largest weekly rise since last October.

In LME, prices declined earlier as worries that Spain could need sovereign aid and on fading hopes of monetary stimulus from the US Federal Reserve.

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.

Economic Data August 24, 2012 actual v. forecast 

Date

Time

 

Currency

 

 

 

Event

Actual

 

Forecast

 

Previous

 

 

Aug. 24

00:30

 

AUD

 

 

 

RBA Governor Stevens Speaks 

 

 

 

 

 

 

 

 

09:30

 

GBP

 

 

 

Business Investment (QoQ) 

-1.5%

 

2.8% 

 

1.9% 

 

 

 

09:30

 

GBP

 

 

 

GDP (QoQ) 

-0.5%

 

-0.5% 

 

-0.7% 

 

 

 

09:30

 

GBP

 

 

 

GDP (YoY) 

-0.5%

 

-0.6% 

 

-0.8% 

 

 

 

13:30

 

USD

 

 

 

Core Durable Goods Orders (MoM) 

-0.4%

 

0.5% 

 

-2.2% 

  

 

13:30

 

USD

 

 

 

Durable Goods Orders (MoM) 

4.2%

 

2.4% 

 

1.6% 

  

 

Upcoming Economic Events that affect the CHF, EUR, GBP and USD

Date

Time

Currency

Event

Previous

 Aug. 27

09:00

EUR

German Ifo Business Climate Index 

103.3 

 

09:00

EUR

German Current Assessment 

111.6 

 

09:00

EUR

German Business Expectations 

95.6 

Aug. 28

07:00

EUR

GfK German Consumer Climate 

5.9 

 

15:00

USD

CB Consumer Confidence 

65.9 

Aug. 29

01:00

EUR

German CPI (MoM) 

0.4% 

 

01:00

EUR

German CPI (YoY) 

1.7% 

Government Bond Auctions

Date  Time  Country 

27/8  11:30  Germany 

28/8  10:30  Spain

28/8  11:00  Italy 

28/8  19:00  US 

29/8  11:00  Italy 

29/8  19:00  US 

30/8  05:35  Japan

30/8  11:00  Italy 

30/8  19:00  US

Want to read more articles like this one?
Enter your e-mail address and read FX Empire content directly from your inbox.
 
We value your privacy. Your e-mail address will not be shared.
About:FX Empire Analyst - Barry Norman

Barry produces a private Daily Market Review newsletter that is distributed around the globe to over 25,000 subscribers and recently published a book on Options Trading that is available from amazon.com

  View all of FX Empire Analyst - Barry Norman's Articles    
Share Your Thoughts: Post a Comment


Your email address will not be published.