Gold has risen again, driven by poor release of pending home sales. The key indicator fell 3.7%, compared with the estimate of -0.9%. It was the biggest drop since December 2014, raising concerns about the strength of the important housing sector. Economic growth this year has slipped compared to 2015, but it was not good news, as the final GDP for the first quarter was revised upwards. The indicator recorded a gain of 1.1%, above the estimate of 1.0%. This reading was stronger than the preliminary reading of 0.8% of GDP. On the consumer front, Consumer Confidence impressed by climbing to 98.0 points, easily beating the forecast of 93.2 points. It is strengthening consumer confidence in the United States? It is not clear, as UoM Consumer Sentiment last week fell to 93.4 points and reached expectations. On Wednesday, US personal spending was lukewarm, gaining 0.4% against 1.0% the previous month.
One of the big winners of the Brexit consultation has been the gold as financial markets fell sharply after the surprising news that Britain had voted to leave the European Union. Gold took advantage of the chaos emerged a remarkable 7.1 percent on Friday. The metal has given some ground this week as market sentiment has improved as the dust begins to settle from the shock of Brexit. Gold has enjoyed a stellar month of June to earn some 8.8% in value and trading comfortably above the level of $ 1,300.
In the aftermath of the Brexit vote continues to reverberate in the UK and Europe, political leaders must now pick up the pieces and deal with the new radical scenario that was unthinkable a few months ago only - that of a European Union without Britain. The historic decision raises many questions and has led to political and economic instability in Europe and the UK, and finished with a staggering $ 3 trillion from global stock markets. The pound has fallen 10 percent since the vote, the Minister of Economy, George Osborne, and Governor of the Bank of England Mark Charney have tried to reassure the markets and the public that the situation is under control, but it is ? The political situation is fluid in Britain, with Prime Minister Cameron resign, the Labour Party in turmoil, and the general elections likely later this year. In the financial sphere, the pound and the markets have taken a beating, and London's position as a global financial center has been shaken. The uncertainty will not disappear in the short term, so traders should be prepared for greater volatility in currency markets and commodities.
The first Cameron, a strong supporter of the EU, British Prime Minister is in the unenviable position of explaining the decision to Brexit European fuming. Cameron arrived in Brussels for an EU summit on Tuesday and the meeting was fraught with tension, dismay and anger. Clearly, the "divorce" century "between Britain and the EU could be spiteful and messy. Cameron has asked for more time to prepare for departure from Britain and wants to renew relations" productive "with Europe. However, European are in no mood for hugs and kisses on both cheeks German Chancellor Merkel said the UK could not "cherry pick" and that a relationship with Europe entails obligations and not only rights -. in other words, Europeans are rejecting "half members." Furthermore, Europe wants Britain to leave as soon as possible in order to minimize uncertainty and instability caused by the vote Brexit. French President Hollande wasted no time in go on the attack, saying that London should no longer remain a center of operations for cleaning euros. this market is worth billions of euros in foreign exchange and derivatives and offers of this measure would be a blow to the financial sector in London . Already, the European Banking Authority has announced that leave London and move to Paris or Frankfurt.
/ USD XAU Basics
On Wednesday (June 29)
8:30 Price Index US PCE Core. 0.2% estimate. Current 0.2%
8:30 Personal Spending United States. 0.4% estimate. Current 0.4%
8:30 Personal Income United States. 0.3% estimate. Current 0.2%
Sales 10:00 United States still homeless. -0.9% Estimate. Real -3.7%
10:30 oil inventories US. -2.3M Estimate. Real -4.1M
16:30 US Bank stress tests
Upcoming key events
Thursday (June 30)
Unemployment Claims 12:30 US. 267K estimate
* Key Announcements are highlighted in bold
* All times are EDT release
XAU / USD for Wednesday, June 29, 2016
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