Gold Fundamental Analysis August 30, 2013 Forecast

Analysis and Recommendations:

Gold is trading at 1412.40 easing by $6.40. Gold today retreated from a three-month high on speculation US economic data will reinforce the case for the Federal Reserve to slow stimulus. Gold fell 0.6 per cent to a low of $ 1,409.40 an ounce, dropping for the first time in six days. Gold prices declined around 0.3 percent today on the back of strength in the US Dollar Index (DX). However, sharp downside in prices was capped as result of rise in SPDR gold holdings coupled with upbeat global market sentiments.

The U.S. economy expanded at a faster pace than previously estimated in the second quarter helping to support the US dollar as exports and business investment were revised upward, indicating a stronger trajectory for growth heading into the second half of the year. Traders are once again wondering what the FOMC will do in September.

The nation’s gross domestic product, the broadest measure of goods and services produced in the economy, grew at a 2.5% annual rate in the second quarter, an upward revision from an initial estimate of 1.7% reported last month, the Commerce Department said Thursday. Economists had forecast a revised second-quarter growth rate of 2.2%.

Traders are a bit less risk-averse Thursday. Notions of an imminent U.S. military attack on Syria receded overnight as President Obama said Wednesday he has not decided on a response to the Syrian regime’s alleged use of chemical weapons against civilians. Also, U.S. allies are not in agreement on what to do on the matter. There were no other major developments on the economic or geopolitical front overnight. Traders and investors will focus on U.S. economic data due for release Thursday that includes weekly jobless claims and second-quarter gross domestic product.

The long U.S. Labor Day holiday weekend is approaching, so trading volumes in many markets Thursday and Friday are likely to dwindle. However, once U.S. traders come back to work next Tuesday they will have a full plate of matters upon which to ponder.

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 29, 2013 actual v. forecast

 

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

Government Bond Auction

Date Time Country 

Aug 30 14:30 UK

Sep 03 09:10 Norway

Sep 03 09:15 Austria

Sep 03 09:30 Belgium

Sep 03 09:30 UK

Sep 04 09:10 Sweden

Sep 04 09:30 Germany

Sep 05 08:30 Spain

Sep 05 08:50 France

Sep 05 15:00 US

Sep 06 15:30 Italy