Gold Fundamental Analysis December 20, 2012, Forecast

Analysis and Recommendations:

Gold eased again today trading at 1669.55 as markets continue to look for more risk. Improved buying at lower levels led spot gold prices to bounce back from the lows and is currently trading higher by 0.29 percent. Speculation that the US lawmakers are nearing to a conclusion over the fiscal cliff issue is creating positive market sentiment resulting into rise in risk appetite thereby pressurizing the US Dollar Index (DX).

A severe variation is going on in global market due to the precious metals losing their safe haven appeal amid a slew of positive economic news as well as progress over talks to avert so called US fiscal cliff.  With the US budget deal inching closer, the yellow metal’s safe-haven appeal has dimmed considerably. The precious metals were under pressure from currency fluctuations and weak demand despite marriage season. Gold as well as silver dropped over 0.5 per cent. In the base metal segment, barring nickel, other metals were seen rising in LME with lead gaining over one per cent.

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 19, 2012 actual v. forecast

 

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

Government Bond Auction

Date Time Country 

Dec 20 10:30 UK 

Dec 20 16:30 Italy  

Dec 20 18:00 US 

Dec 21 16:30 Italy