Gold Weekly Fundamental Analysis October 15-19, 2012 Forecast

Gold Weekly Fundamental Analysis October 15-19, 2012 Forecast

Gold turned mid week and has tumbled on positive data from the US and a shift in safe havens. Gold fell nearly 1 percent on Friday, its biggest daily drop in more than two months, as improving U.S. consumer sentiment and jobs data stirred concern the Federal Reserve might curb the monetary stimulus that has boosted gold prices. Gold closed the week at 1755.25. For the week, gold fell 1.5 percent, its largest weekly loss since the last week of June.

Gold began to drop after data showed U.S. consumer sentiment unexpectedly rose to a five-year high. On Thursday, weekly U.S. jobless claims showed a surprise drop, more evidence of a stronger labor market after the unemployment rate fell to a four-year low of 7.8 percent last week.

Some analysts expected gold to rebound because of euro zone debt worries and economic uncertainty amid prospects of a U.S. “fiscal cliff” of automatic spending cuts and tax increases scheduled for January. That scenario could shock the economy and lead to more money printing from the Fed.

The metal has now ended lower in five of its last six sessions and is on track for a more-than 1 percent loss for the week. That would be its biggest decline since early August. 

Bullion posted consecutive increases in the four months prior to October as the Fed announced it would keep buying assets until the job market improves dramatically. Its rally sent prices to an 11-month high last Friday, but its failure to break above $1,800 an ounce triggered technical weakness. 

Gold, which is seen as a hedge against inflation, briefly turned higher after a report showed US producer prices rose more than expected in September, but underlying inflation pressures were muted.

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. 

Major Economic Events for the week of October 8-12, 2012 actual v. forecast for Euro, GPB, the Franc, and USD

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

Government Bond Auction

Date Time Country 

Oct 15 09:10 Slovakia 

Oct 15 10:00 Norway 

Oct 16 08:30 Spain 

Oct 16 09:10 Greece 

Oct 16 09:30 Belgium 

Oct 17 09:10 Sweden 

Oct 17 09:30 Germany 

Oct 17 09:30 Portugal 

Oct 17 10:00 Norway 

Oct 17 14:30 Sweden 

Oct 18 08:30 Spain 

Oct 18 08:50 France 

Oct 18 09:30 UK 

Oct 18 09:50 France 

Oct 18 14:30 Sweden 

Oct 18 15:00 US 

Oct 18 17:00 US