Gold is consolidating at the moment within $1400 to $1500 levels. The next major direction for gold is still uncertain. If gold does go below $1300, it might signal the decades Bull Run is over. At the moment, there are a lot of natural demands for the commodities which is lending support for gold. Gold [...]
The whole of Europe is headed for a permanent recession–a depression. Austerity and labor reforms can’t save it. Radical measures–abandoning the euro and deficit spending in Germany–are the only way out. Unemployment exceeds Great Depression levels in Spain, many parts of Greece, Portugal and Italy, and is rising in northern Europe. Slashing government spending and [...]
Here are the forecasts for upcoming economic data.
The Labor Department announced the economy created 165,000 jobs in April, and the unemployment rate slipped a notch to 7.5 percent. That’s better than March but hardly enough-getting unemployment down to 6 percent over the next three years would require 365,000 jobs a month, and that is not likely to happen. Adding in discouraged adults [...]
Yesterday, the Federal Reserve announced it is keeping its foot on the gas–for good reason. The fiscal drag imposed by the $160 billion January tax increase, and $45 billion in sequester spending cuts is slowing consumer spending and smothering investment. Jobs will remain tough to find, and wages in the doldrums well into summer. Now [...]
Euro/USD has been trading within the 1.2900 and 1.3200 range for many days. At the time of this article, it is testing 1.3200 after failing to go below the 1.2900 level from last week. The Euro currency is slightly stronger due to the recent overall weakness of the USD. We have the ECB and FOMC [...]
by Dixon Fung Gold continues to move higher in a correction after hitting the low at $1,322. Last Friday, gold traded above the 50 percent Fibonacci retracement at $1,454 and it is now trying to test the 61.8 percent retracement at $1,485 at the time of this article.
The Commerce Department reported that consumer spending advanced 0.2 in March-much weaker than the 0.3 and 0.7 percent registered in January and February. Extraordinary year-end bonuses and dividends-intended to dodge higher taxes in January-boosted consumer activity in January and February but now households are hunkering down. Much weaker consumer spending is expected for the second [...]
The Commerce Department reported GDP grew at a 2.5 percent pace in the first quarter but don’t break out the champagne. Several one-time factors contributed to this seemingly robust performance. The economy is already slowing and new crises threaten. Most of first quarter growth likely was concentrated in January and February and the economy slowed, [...]
Gold continues to move higher and is testing the $1,455 resistance level at the time of this article. If the technical correction is still in play, then gold should be testing the downside from this level.