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Weekly Analysis and Recommendations:
Gold closed the week at 1326.10 down from the opening on Monday at 1388.50. On Friday precious metals hit bottom ahead of the release of US data and looked like they were going to break below the all important 1300 level but only touched 1304.80. The shiny metal tumbled over $62 for the week after tensions and safe haven trades dissipated. Early in the week the Russians offered an acceptable solution to the chemical weapons in Syria and pulled the plug US military action. By the end of the week President Obama asked congress to delay the vote on military intervention.
The prospect of the US launching a military strike against the Assad regime had sent the gold price to over US$1,430, but with any action now on hold following the diplomatic initiatives; it is next week’s US Federal Reserve meeting that is dominating the gold market. Many economists expect a reduction in the Fed’s current US$85bn per month bond-buying programme. Confirmation of tapering would help the dollar and hurt the gold price, which traditionally moves in the opposite direction to the US currency.
A report in Bloomberg suggested the Fed is contemplating a US$35-40bn cut in the monthly bond-buying program, which could also mark the start of a steady withdrawal all of the current stimulus measures. Goldman Sachs has been one of the most vocal bears of the gold price this year and was predicting a further decline as the stimulus measures are withdrawn.
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 recent analysis and information in our weekly reports and we provide daily updates and outlooks.
Major Economic Events for the week of September 9-13 actual v. forecast for Euro, GPB, the Franc, and USD
Chinese Fixed Asset Investment (YoY)
Chinese Industrial Production (YoY)
French Non-Farm Payrolls (QoQ)
Historical: From 2011 to present
Highest: 1911.60 on Sep 06, 2011
Average: 1633.45 over this period
Lowest: 1180.35 on Jun 28, 2013
Economic Highlights of the coming week that affect the Euro, GBP, CHF and the USD
Government Bond Auction
Date Time Country
Sep 16 09:00 Slovakia
Sep 16 09:10 Norway
Sep 17 08:30 Spain
Sep 17 09:30 Belgium
Sep 18 09:10 Sweden
Sep 18 09:30 Germany
Sep 18 09:30 Portugal
Sep 19 08:30 Spain
Sep 19 08:50 France
Sep 19 09:30 UK
Sep 19 09:50 France
Sep 19 15:00 US
Sep 19 17:00 US
Sep 20 15:30 Italy
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