Gold
Gold Fundamental Analysis February 8, 2012, Forecast

Gold Fundamental Analysis February 8, 2012, Forecast

Economic Events: (GMT)

There are no significant events in the USA or Europe on Wednesday

Just a heads up since gold is volatile and will react to most economic indicators we will begin to post the daily calendar with events that could effect the price of gold. The gold price is sensitive to a number of scheduled U.S. and Euro area macroeconomic announcements-including retail sales, non-farm payrolls, and inflation. Gold's high sensitivity to real interest rates and its unique role as a safe-haven and store of value typically leads to a counter-cyclical reaction to surprise news, in contrast to their commodities. It also shows a particularly high sensitivity to negative surprises that might lead financial investors to become more risk averse.

These results have a number of implications. To reduce the uncertainty of the return on gold transactions, traders may wish to time their orders flow so as to avoid the release of information that has been shown to affect prices. For longer-term market participants, these results provide confirmation of the pro-cyclical bias of many commodities and gold's role as a safe-haven during periods of economic uncertainty.

 

Analysis and Recommendations:

Gold is trading at 1748.40 ending an up and down session. Earlier in the day gold began falling hitting the low of 1712.65. As news of a possible deal was reported in Greece the USD began to plummet and Gold did as it should do, it rose. As the dollar came down gold turned around and went up 1.4%.

Review of Tuesday's Economic Reports

00:01
 
GBP
 
 
BRC Retail Sales Monitor (YoY)
-0.3%
 
-0.8%
 
2.2%

03:30
 
AUD
 
 
Interest Rate Decision
4.25%
 
4.00%
 
4.25%

03:30
 
AUD
 
 
RBA Rate Statement
 
 
 
 
 

05:00
 
JPY
 
 
Leading Index
94.3
 
93.8
 
93.7

07:45
 
EUR
 
 
French Trade Balance
-5.0B
 
-5.3B
 
-4.1B

08:00
 
TWD
 
 
Taiwanese Trade Balance
0.42B
 
2.10B
 
2.31B

11:00
 
EUR
 
 
German Industrial Production
-2.9%
 
-0.1%
 
0.0%

11:30
 
CLP
 
 
Chilean Trade Balance
1.98B
 
1.15B
 
0.39B

13:30
 
CAD
 
 
Building Permits (MoM)
11.1%
 
0.8%
 
-2.6%

15:00
 
USD
 
 
IBD/TIPP Economic Optimism
49.4
 
48.3
 
47.5

16:30
 
USD
 
 
4-Week Bill Auction
0.060%
 
 
 
0.050%

Gold Pivot Points (Time Frame: 1 Day)

 Name  S3  S2  S1  Pivot  R1  R2  R3

 Classic
1679.27
1694.58
1719.67
1734.98
1760.07
1775.38
1800.47

 Fibonacci
1694.58
1710.02
1719.55
1734.98
1750.42
1759.95
1775.38

 Camarilla
1733.64
1737.34
1741.05
1734.98
1748.45
1752.16
1755.86

 Woodie's
-
1697.03
1724.55
1737.43
1764.95
1777.83
-

 DeMark's
-
-
1767.73
1738.81
1727.33
-
-