Gold Fundamental Analysis August 29, 2012, Forecast

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Analysis and Recommendations:

Gold was down in early trading and came back to life after ECB President Draghi withdrew from the Economic Symposium due to a heavy workload. Gold is trading just about even at 1671.25. Following a rally to the highest level in four months, spot gold inched down but prices are still clinging below $1660 an ounce. In a report to congressional panel, US Fed chairman Ben Bernanke said the central bank see more room for easing monetary policy that raised hopes of fresh quantitative easing and pulled bullion higher earlier. At the same time, caution prevailed in the market ahead of the central banks and finance ministers meeting at Jackson Hole on August 31 and September 01. Investors look forward to speeches from Fed Chairman and ECB President on expectations of fresh measures to sort out the prevailing weak economies.

Meanwhile US dollar slightly reversed after hitting a two month low. Meanwhile, speculators raised their bullish bets on gold futures and options in the previous week to the highest level since May. Looking ahead, traders will closely watch the US consumer confidence and Richmond Fed index data later the evening for getting fresh directional moves.

Let’s face it until Bernanke’s speech on Friday, there isn’t going to be much more activity in the markets.

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 28, 2012 actual v. forecast

Date

 

Currency

 

 

Event

Actual

 

Forecast

 

Previous

 

 

Aug. 28

 

AUD

 

 

HIA New Home Sales (MoM) 

-5.6%

 

 

 

2.8% 

 

 

 

 

EUR

 

 

GfK German Consumer Climate 

5.9

 

5.9 

 

5.9 

 

 

 

 

USD

 

 

CB Consumer Confidence 

60.6

 

66.0 

 

65.4 

  

 

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

Date

Time

 

Currency

 

 

Event

Forecast

 

Previous

 

 

Aug. 29

01:00

 

EUR

 

 

German CPI (YoY) 

1.8% 

 

1.7% 

 

 

 

08:00

 

CHF

 

 

KOF Leading Indicators 

1.50 

 

1.43 

 

 

 

13:00

 

EUR

 

 

German CPI (MoM) 

0.2% 

 

0.4% 

 

 

 

13:30

 

USD

 

 

GDP (QoQ) 

1.7% 

 

1.5% 

 

 

 

15:00

 

USD

 

 

Pending Home Sales (MoM) 

1.0% 

 

-1.4% 

 

 

 

19:00

 

USD

 

 

Beige Book 

     

Government Bond Auctions

Date Time Country 

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

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About:FX Empire Analyst - Barry Norman

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