Gold keeps minutes in the focus range 8 consecutive weeks - FOMC

Fundamental Outlook for gold: neutral

Gold was more than 1% this week with the precious metals at $1581 on Friday after a disappointing NFP print broader commodities and stock markets weighed close. Before the end of trading on Friday had reduced throughout the week ahead, suggesting with the specifications, that the couple can test the lower bound of its recent gold. But gold is now a $100 range hold for the last two months, we remain pending before an outbreak of its recent range on the sidelines with our longer-term trend is still weighted down.

A weaker than expected pressure in June non-farm wages and payrolls report weighed on broader risk appetite with gold, the tracking of stocks and other commodities connected lower on Friday. NFP amounted to 80 K, missing consensus estimates for the reading of 100 K keep with the unemployment rate of 8.2%, as expected. A drill down deeper shows a slight improvement in the data in employment, a senior unsecured looked back as discouraged workers employees. Wage growth rose also unexpectedly in June on his fastest pace this year. The data were weak enough, where it is unlikely that further relief from the federal warrant reserve, but continue to weigh concerns about a global slowdown in economic growth to broader market sentiment continues to take hold. Gold paragraph 1.65% on the heels of the release as a fear of deflation reduced demand after the previous metal as a hedge against rising prices.

Look at the next week, dealers will closely minutes from the June 20 meeting FOMC policy amid widespread concern over domestic growth prospects and a continued recovery in the labour market are considered. Investors will weigh the Outlook, quoted on future monetary policy in the light of labour market data on Friday after Chairman Bernanke, that the Central Bank was ready to act conditions should deteriorate further. With growth, the recent uptick in wage growth and continued stickiness underlying price, however, find we it unlikely that the Fed will go on further easing at these levels. Find gold, continue to strongly to fluctuations in the dollar with the 20-tägige inverse correlation between the Dow Jones FXCM dollar index (ticker: USDOLLAR) and the price of gold hit to respond its highest level since mid-April.

From a technical perspective gold in consolidation for the past eight weeks with the price keeps its recent range of 38.2% to 61.8% Fibonacci extensions, which September and February of highs at $1640 to $1545 or been taken. Friday's reduced the whole week ahead suggest further weakness ahead with our medium-term bias number (s) weighted down, as long as the February 1641 is highly respected decline. Soft support lies on the $1561 secured through the area with 1545 low. As Jamie Saettele notes "this length of consolidation is a stunning break probably..." "Fuel finally" with a break below the 61.8% extension considered subsequent floors at $1500 and the mouth of July 2011 lows and 78.6% extension at $1480. interim resistance is at $1624 with a break over the heights of the June relief further downside pressure. Such a scenario is seen at the 200-day moving average at $1660, the may highs at $1671 and the $1700 mark our bias with overhead goals invalid. In other words, we break out the several months range neutral remain at these levels until one. -MB

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