Gold Fundamental Analysis December 6, 2012, Forecast

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Updated: Aug 21, 2015, 00:00 UTC

Analysis and Recommendations: Gold is trading back below the 1700 price level at 1696.85 after early gains on bargain buying the precious metal tumbled

Gold Fundamental Analysis December 6, 2012, Forecast

Analysis and Recommendations:

Gold is trading back below the 1700 price level at 1696.85 after early gains on bargain buying the precious metal tumbled and it trading at 1696.85 at this writing. Gold rebounded, erasing previous session’s losses as buyers rushed to snatch bargains but uncertainty over the US fiscal cliff talks made investors cautious. Gold slipped almost one percent to its weakest level since November on technical and option related selling yesterday. Meanwhile, little progress on talks between the US policy makers regarding the automatic tax hikes and spending cuts, starting from 2013, keep investors at bay. If the White House and US Congress failed to reach a deal on avoiding the year end budget crisis, the US economy could fall into recession. The euro drifted higher to a one and half month high whereas the dollar slipped down, influenced by concerns about the health of the US economy. At the same time, the market responded silently towards the news that the central bank of South Korea purchased 14 tonnes of gold in November to spread their portfolio. Physical demand for gold from Asia remained dull while the ETF demand is still placed at peak levels.

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 5, 2012 actual v. forecast

Date

Currency

Event

Actual

Forecast

Previous

Dec. 05

AUD

GDP (QoQ)

0.5%

0.6%

AUD

RBA Assist Gov Lowe Speaks

GBP

Services PMI

50.2

51.1

50.6

EUR

Spanish 10-Year Obligacion Auction

5.290%

5.517%

EUR

Retail Sales (MoM)

-1.2%

-0.1%

-0.6%

PLN

Polish Interest Rate Decision

4.25%

4.25%

4.50%

RUB

Russian CPI (MoM)

0.3%

0.5%

USD

ADP Nonfarm Employment Change

118K

125K

157K

USD

Nonfarm Productivity (QoQ)

2.9%

2.7%

1.9%

USD

Unit Labor Costs (QoQ)

-1.9%

-0.9%

-0.1%

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

Date	Time	Currency	Event	Forecast	Previous
Dec. 06	08:15	CHF	CPI (MoM)		0.1%
	09:30	GBP	Trade Balance	-8.8B	-8.4B
	10:00	EUR	GDP (QoQ)	-0.1%	-0.1%
	11:00	EUR	German Factory Orders (MoM)	0.9%	-3.3%
	12:00	GBP	Interest Rate Decision	0.50%	0.50%
	12:00	GBP	BOE QE Total	375B	375B
	12:45	EUR	Interest Rate Decision	0.75%	0.75%
Dec. 07	09:30	GBP	Industrial Production (MoM)	0.7%	-1.7%
	09:30	GBP	Manufacturing Production (MoM)	-0.2%	0.1%
	09:30	GBP	Industrial Production (YoY)	-0.6%	-2.6%
	11:00	EUR	German Industrial Production (MoM)	-0.5%	-1.8%