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When Will the Gold “Bubble” Burst

By DailyForex.com
By GoLearn Forex

Positive economic data released today pushed Global Equity Markets higher once again. In Canada, a better than expected print on Retails Sales moved the CAD higher as well as month over month figures that published at 1%. In addition, last month's print was revised upwards as well.

In the U.S., Existing Home Sales month over month came in at 10.1% versus expectations of 2.3%. The DJIA moved ahead 132.71 points to 10,450.95 marking a high for year. All of this was bad news for the Greenback as the DXY dropped to 75.125. The CAD was the big gainer against the Dollar, up 1.4%.

Gold continues to make new highs striking 1,174 before settling back to close at 1,165.20, a $14.60 gain for the day. Some analyst are concerned about Gold’s appreciation and see it as the next asset bubble to crash, however, other say the move is justifiable and that higher Gold’s price will prevail. Oil clawed its way back from a recent lull to hit an intra-day high of 79.92, before closing the day at 77.68

Economic data releases due out tomorrow include GDP in the EUR zone as well as in the U.S. Case Schiller Home Price Index will print tomorrow as well as the U.S Consumer Confidence numbers. Today's Home Sales print and the prior day's Retail Sales figures in the U.S beat expectations. This may dampen the effects that the U.S Consumer Confidence figures and Case Schiller Price Index have. Normally these can be market movers but sales figures right now are in the driver’s seat.


Upcoming Forex Events for November 24, 2009



EUR German Ifo Business Climate Index Forecast 92.50 Previous 91.90

USD GDP (QoQ) Forecast 3.00% Previous 3.50%

USD FOMC Meeting Minutes

AUD Construction Work Done (QoQ) Forecast 0.10% Previous -0.10%

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