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Shivani Financial GBP/USD short term bottom seems 5478-5383 and top 6210-42. Shivani Financial EUR/USD short term bottom seems 2580-2618 and top 3510. Shivani Financial USD seems to weaken this quarter with GBP target of 6330 and EUR of 3250 if talks of QE3 takes place and euro area resolution policies implemented without new story. Shivani FinancialGold has taken correction according to our forecast for it to go 1850 by August end.

Thursday, August 18, 2011

Gold price approached 1800 again as the US dollar weakened

Gold price approached 1800 again as the US dollar weakened. Disappointments from Merkel and Sakorzy's meeting also drove demand for safe-haven higher. The benchmark Comex contract for the yellow metal rose for a third consecutive day and settled at 1797.6, up +0.71%.Risk appetite was initially lifted as retailers reported strong earnings results and US President Barack Obama pledged to adopt new measures to reduce deficits and boost employment growth. Optimism was then pared after US' PPI exceeded expectations and mortgage applications plunged. The near-term outlook for financial markets remains mixed.

US President Barack Obama said that he will propose a plan in September to stimulate economic growth and the job market. It's believed the plan will include tax reduction, construction work and assistance for the unemployed. Concerning the economic outlook, Obama said he's not worried about another recession but the country is 'in danger of not having a recovery that is fast enough to deal with a genuine unemployment crisis for a whole lot of folks out there'.

By
M.Zohaib Gadit
Forex Trading Consultant


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