Gold Fundamental Analysis December 31, 2012, Forecast

Analysis and Recommendations:

Gold dipped by close to 7.00 to trade at 1656.85 as traders stayed sidelines on uncertainty weather the United States would be able to reach consensus to avert the $600 billion tax hike and spending cuts starting from next year. Gold has been trading in a tight range of $1668-1650 regions since the start of the week. If the US authorities fail to reach an agreement before the deadline, it could push the economy into recession and benefit gold. Economic uncertainties usually lift gold’s safe haven appeal and assist prices. The dollar is still under pressure but climbed against the euro ahead of the weekend budget talks in Washington. Gold has already digested the reports of upbeat US jobless data yesterday. the US labor department, the new unemployment benefits fell to one of the lowest levels of this year last week. Anyhow, market onlookers would curiously watch the outcome of US budget talks this week for fresh directional moves on bullion. More positive eco news from the US saw both Chicago PMI and Pending Home Sales print above forecast.

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.

Markets will have a shortened day on Monday December 31st and most are closed on Tuesday January 1, 2013. Our analysis will be published as markets close on Monday and there will be no analysis on Tuesday. I want to wish all of my readers a happy and healthy new year. I hope you continue reading our analysis next year. 

Economic Data December 28, 2012 actual v. forecast

 

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