June 16, 2012 16: 11 GMT fundamental forecasts for gold: neutral Gold is significantly stronger at the end of trade this week with the metal precious progress of 2.09% to nearly $1626 in New York, marking its biggest weekly advance since the first week of June. The price of bullion has increased steadily throughout the week risk of major event of the week next with elections key in Greece and the decision of FOMC rate on tap. The rise in the price of gold is accompanied by a decrease in the value of the greenback which closed the week off the coast of 0.80% after the G20 leaders cited of the preparations for a coordinated global response counter offshore risk of a liquidity crunch that the actors of the market of weight the consequences of a Greek-euro exit.
All eyes will be fixed on the Greece this weekend at the head of voters return to the polls for parliamentary elections with the likely outcome determine the future of the countries of the Euro area. With the global central banks reaffirming their commitment to provide additional liquidity should the Greek vote rile markets, it is probably however will remain well supported as the injection of liquidity invites investors to move from currency fiat on inflation concerns. While the results of the election will weigh heavily on the broader risk appetite, which is more crucial to the prospects for gold are how major global central banks - the Federal Reserve and the European Central Bank - to meet a disappointing outcome of the elections. Indeed, chatter, 14 June suggested that the g-20 leaders discussed a coordinated response around the world to help support the euro. While we suspect an important announcement over the weekend, the next meeting of the Federal Reserve policy offers clues where this can occur.
The decision of rate FOMC Wednesday, highlights the risk of event more important for the precious metal. With national economic data begins to soften even once, recent speech of the Fed officials suggests that there is a growing split within the Federal Reserve with respect to start a new round of easing quantitative or not. Thus, the implications of the FOMC decision next week for gold can be significant participants of the market begin to factor in the likelihood of more fed of relaxation. Look for the value of the dollar offers clarity with the dollar likely to come under substantial pressure should officials signal intention to intervene in markets to support the fragile recovery. Such a scenario would likely fuel a rally in gold that takes the precious metal through resistance key to $1628.
From a technical point of view, gold remains within dating descending channel training to senior February with the closing of the week price just below the confluence of the resistance of the chain and the tracing of Fibonacci 38.2% from February 29 down $1628. A breach of this level exposes the objectives of resistance to the confluence of the 50 day moving average and the tracing of 50% to $1659 and the moving average 200 days to $1675. Interim support is the responsibility of the tracing by 23.6% to $1590 and is supported by the lower $ 1545 of June. It is important to note that the month last gold has broken below trendline support dating back to 2008 with only a full commitment to ease more the Fed likely to rehabilitate the break. Look for prices to benchmarks in the coast of the evolution of the situation in Greece and the decision of rate FOMC increased speculation of more comprehensive Bank Central facilitating likely to keep many gold argued early next week.
DailyFX provides news forex and technical analysis on trends affecting the world market currencies.
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16 June 2012 16: 11 GMT
All eyes will be fixed on the Greece this weekend at the head of voters return to the polls for parliamentary elections with the likely outcome determine the future of the countries of the Euro area. With the global central banks reaffirming their commitment to provide additional liquidity should the Greek vote rile markets, it is probably however will remain well supported as the injection of liquidity invites investors to move from currency fiat on inflation concerns. While the results of the election will weigh heavily on the broader risk appetite, which is more crucial to the prospects for gold are how major global central banks - the Federal Reserve and the European Central Bank - to meet a disappointing outcome of the elections. Indeed, chatter, 14 June suggested that the g-20 leaders discussed a coordinated response around the world to help support the euro. While we suspect an important announcement over the weekend, the next meeting of the Federal Reserve policy offers clues where this can occur.
The decision of rate FOMC Wednesday, highlights the risk of event more important for the precious metal. With national economic data begins to soften even once, recent speech of the Fed officials suggests that there is a growing split within the Federal Reserve with respect to start a new round of easing quantitative or not. Thus, the implications of the FOMC decision next week for gold can be significant participants of the market begin to factor in the likelihood of more fed of relaxation. Look for the value of the dollar offers clarity with the dollar likely to come under substantial pressure should officials signal intention to intervene in markets to support the fragile recovery. Such a scenario would likely fuel a rally in gold that takes the precious metal through resistance key to $1628.
From a technical point of view, gold remains within dating descending channel training to senior February with the closing of the week price just below the confluence of the resistance of the chain and the tracing of Fibonacci 38.2% from February 29 down $1628. A breach of this level exposes the objectives of resistance to the confluence of the 50 day moving average and the tracing of 50% to $1659 and the moving average 200 days to $1675. Interim support is the responsibility of the tracing by 23.6% to $1590 and is supported by the lower $ 1545 of June. It is important to note that the month last gold has broken below trendline support dating back to 2008 with only a full commitment to ease more the Fed likely to rehabilitate the break. Look for prices to benchmarks in the coast of the evolution of the situation in Greece and the decision of rate FOMC increased speculation of more comprehensive Bank Central facilitating likely to keep many gold argued early next week.
DailyFX provides news forex and technical analysis on trends affecting the world market currencies.
Learn forex trading with a free account of practice and exchange of graphics of FXCM.
16 June 2012 16: 11 GMT
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