Gold Fundamental Analysis December 27, 2012 Forecast

Analysis and Recommendations:

Gold rebounded after dipping in the Asian session to trade at 1663.55 as market sentiment shifted a bit after news that Congress and the President would be returning to Washington tomorrow to pick up negotiations. Traders are a bit more optimistic that there might be a deal within the next 48 hours.

Traders stayed sidelines on indecision over the United States would be able to avoid the fiscal cliff crisis. The deal to avert the $600 billion tax hike and spending cuts starting from next year threaten the world’s largest economy back into recession benefiting bullion. If the US authorities fail to reach a consensus before the deadline, it could push the economy into recession. Economic uncertainties usually lift gold’s safe haven appeal and assist prices.  Meanwhile, physical demand for gold slightly rose as Asian buyers rushed to grab bargains from multi-month low levels. The Euro held steady while the yen sank to 20 month low against the US dollar. Anyhow, the outcome of the US fiscal cliff talks would be the key event that investors curiously watch out in the coming days for proper direction of yellow metal.

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 26, 2012 actual v. forecast

Markets were closed on Christmas day and there were no economic releases or major data reports.

 

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

Government Bond Auction

Date Time Country 

Dec 27 10:10 Italy  

Dec 28 10:10 Italy