Fundamental forecasts for gold: neutral
Gold is higher at the end of the trade this week with the metal precious progress of 1.79% at the end of the month to the mark $ 1600. A massive rally in broader risk Friday fueled a rally of 3.06% gold after the EU leaders agreed to the band of emergency loans granted to Spanish banks of their seniority status which guarantees up to 100 billion € creditors default, a clear disadvantage to private bondholders. The move was able to put pressure on the Spanish yields that have reached their highest level since the month of November 2011 this month with the fall of 6.8% to 6.3%, 10 years Friday. While the announcement made few adr3ess the structural problems of the region, it mitigates the Spanish financing concerns in the short term with a substantial rebound in appetite for risk weighing on the greenback in favour of
The future of next week, traders will be be closely considering the RBA, BoE interest rate decisions and the ECB with data from key non-agricultural employment of Friday to steal the spotlight. While the Australia and the United Kingdom will leave rates unchanged at 3.5% and 0.50% respectively, focuses on the ECB with the differences in the expectations of the market and Economist considers likely to fuel added volatility in the markets. Night credit Switzerland swaps suggest that market participants are factoring in 37% chance of a rate cut on Thursday, then that 45 of the 57 Economist surveyed by Bloomberg called for lowering the cost of borrowing from the Central Bank. As such, blow of golden eye respond accordingly with more likely facilitate to maintain prices well supported investors look to hedge against the depreciation of the currency and inflation. Data on employment Friday may have the greatest impact on the price of gold next week with a consensus of estimates of the appellant for the addition of any K 90 jobs for the month of June, a slight improvement of the 69 K jobs created in May. In light of the recent decision by the Fed of scope operation key rather than to start a new series of large-scale asset purchases, a lower than expected printing is likely to feed speculation for plu Fed ease, there still no doubt to support the price of gold in the short term.
From a technical point of view, but is still within a descendant of canal dating from the formation to the heights of February with the closing price just below the confluence of the moving average 50 days and the tracing of 61.8% taken form June 15 drops to $1601. Over this breach exposes targets resistance subsequent superstructure depressions April $1612 and the confluence of the 100-day moving average and the top of June approximately $1641. Note that daily that RSI continued to hold above the mark of 40 with a violation over 60 changing of our Centre for higher interest. At first view, it is important to keep in mind that gold has been largely linked to the price holding between extension 38.2% Fibonacci from February to June to $1540 ridges and the highs from June to $1640. Although our prospects long term on the precious metals remains weighted to the downside, fundamental factors and the weakness of the greenback could see well supported in the short term with our prejudices on gold remaining neutral pending out of this price range. -MO
Gold is higher at the end of the trade this week with the metal precious progress of 1.79% at the end of the month to the mark $ 1600. A massive rally in broader risk Friday fueled a rally of 3.06% gold after the EU leaders agreed to the band of emergency loans granted to Spanish banks of their seniority status which guarantees up to 100 billion € creditors default, a clear disadvantage to private bondholders. The move was able to put pressure on the Spanish yields that have reached their highest level since the month of November 2011 this month with the fall of 6.8% to 6.3%, 10 years Friday. While the announcement made few adr3ess the structural problems of the region, it mitigates the Spanish financing concerns in the short term with a substantial rebound in appetite for risk weighing on the greenback in favour of
The future of next week, traders will be be closely considering the RBA, BoE interest rate decisions and the ECB with data from key non-agricultural employment of Friday to steal the spotlight. While the Australia and the United Kingdom will leave rates unchanged at 3.5% and 0.50% respectively, focuses on the ECB with the differences in the expectations of the market and Economist considers likely to fuel added volatility in the markets. Night credit Switzerland swaps suggest that market participants are factoring in 37% chance of a rate cut on Thursday, then that 45 of the 57 Economist surveyed by Bloomberg called for lowering the cost of borrowing from the Central Bank. As such, blow of golden eye respond accordingly with more likely facilitate to maintain prices well supported investors look to hedge against the depreciation of the currency and inflation. Data on employment Friday may have the greatest impact on the price of gold next week with a consensus of estimates of the appellant for the addition of any K 90 jobs for the month of June, a slight improvement of the 69 K jobs created in May. In light of the recent decision by the Fed of scope operation key rather than to start a new series of large-scale asset purchases, a lower than expected printing is likely to feed speculation for plu Fed ease, there still no doubt to support the price of gold in the short term.
From a technical point of view, but is still within a descendant of canal dating from the formation to the heights of February with the closing price just below the confluence of the moving average 50 days and the tracing of 61.8% taken form June 15 drops to $1601. Over this breach exposes targets resistance subsequent superstructure depressions April $1612 and the confluence of the 100-day moving average and the top of June approximately $1641. Note that daily that RSI continued to hold above the mark of 40 with a violation over 60 changing of our Centre for higher interest. At first view, it is important to keep in mind that gold has been largely linked to the price holding between extension 38.2% Fibonacci from February to June to $1540 ridges and the highs from June to $1640. Although our prospects long term on the precious metals remains weighted to the downside, fundamental factors and the weakness of the greenback could see well supported in the short term with our prejudices on gold remaining neutral pending out of this price range. -MO
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