Gold Fundamental Analysis December 21, 2012, Forecast

Analysis and Recommendations:

Gold tumbled again today trading at 1645.55 down over 20 dollars in the day’s trading. US budget deal talks turning sour intensified worries over the fiscal health of the world’s largest economy, puncturing the overall market sentiments. Equities and commodities were under pressure with the world shares retreating from a 17-month high as investors grew wary of the situation in the US. Although US watchers expected this kind of posturing and politicking up to the last minute, it is called the “blame game” as each side prepared for future battles they want to mark their positions so that at a later date they can find news clips or comments they made supporting either side of the results. Everyone is more concerned with their own personal agenda and future political career than the health of the government.

Additional easing in Japan this morning also lowered the demand for gold, as the Bank of Japan did as expected but bucked Prime Minister elect Abe, saying that would consider his recommendations in January after he was actually in office.

Most of the day was filled with mixed data but nothing of notable important to gold traders, except rumors that Spain would request a bailout in Q1 2013.

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 20, 2012 actual v. forecast

 

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

Government Bond Auction

Date Time Country 

Dec 21 16:30 Italy  

Dec 26 01:30 Japan 

Dec 27 10:10 Italy  

Dec 28 10:10 Italy