Gold Weekly Fundamental Analysis June 18-22, 2012, Forecast

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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 was looking for direction and mid week was pushed upwards to end at 1628.15. There were many factors that came together to give gold this new push upwards. There was a shift in safe havens, from the USD to gold, investors began to worry about poor eco data from the US. This was combined with

Date

Last

Open

High

Low

Change %

Jun 15, 2012

1628.15

1622.05

1634.35

1620.95

0.37%

Jun 14, 2012

1622.15

1618.25

1628.85

1610.55

0.23%

Jun 13, 2012

1618.35

1608.95

1625.85

1607.05

0.59%

Jun 12, 2012

1608.85

1591.65

1618.65

1587.35

1.04%

Jun 11, 2012

1592.35

1602.95

1606.15

1583.05

-0.69%

The poor eco data starting up news and rumors that the US Fed would be introducing new or additional monetary stimulus at the FOMC meeting this coming week, added to the statements from the G20 that central banks around the world were ready to act to keep markets stabilized. Lastly, the political and economic turmoil from the EU continues to worry investors with no clear direction or plan, no one is sure what to expect in the coming days. This all made gold attractive to investors this past week.

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 recent analysis and information in our weekly reports and we provide daily updates and outlooks.

Historical

Highest:  1921.05 on Sep 06, 2011

Average:   1418.48 over this period

Lowest: 1026.95 on Oct 28, 2009

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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

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