Gold Fundamental Analysis December 11, 2012, Forecast

Analysis and Recommendations:

Gold began to move up today adding over 11.00 to trade at 1716.65 ahead of the FOMC decision due this week. Markets are mixed on expectations from the US Federal Reserve, with jobs, housing and inflation under control odds are even between the more QE3 bunch and the after the first of the year QE3 team. The US dollar continued to slip today, as traders moved to more risk after some positive data from China this morning.

The US Federal Reserve’s policy meeting will be held on Tuesday and Wednesday and anticipated that the central bank will announce a monthly bond purchase scheme to push more money into the market. Bullion has already digested the news about a drop in the US unemployment rate and growth in China’s factory output and retail sales. US unemployment figures fell to a four year low of 7.7 percent in November last week while the Chinese factory output and retail sales figures lifted to eight month highs.  Anyhow, speculative interest in gold has slowed down recently.  As per CFTC data, the hedge fund and money managers cut their bullish bets on US gold last week sending them to the lowest level since late August. However, investment demand for gold is still high with the ETF holdings staying at record highs.

The US Fiscal Cliff keeps traders stressed along with the announcements over the weekend of the resignation of the Italian Prime Minister.

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 December 9, 2012 actual v. forecast

Economic Data December 10, 2012 actual v. forecast

 

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

Government Bond Auction

Date Time Country 

Dec 11 09:30 Spain 

Dec 11 10:10 Greece 

Dec 11 10:15 Austria 

Dec 11 10:30 Belgium 

Dec 11 10:30 UK 

Dec 11 18:00 US 

Dec 12 10:10 Italy  

Dec 12 10:10 Sweden 

Dec 12 10:30 Swiss 

Dec 12 16:30 US 

Dec 13 01:30 Japan 

Dec 13 09:30 Spain 

Dec 13 10:10 Italy  

Dec 13 10:30 UK 

Dec 13 16:00 US 

Dec 13 18:00 US 

Dec 14 11:00 Belgium 

Dec 14 15:30 UK