Gold Daily Fundamental Analysis
Gold prices were slightly lower on Thursday, as investors locked in their profits after gold prices hit a record high on Wednesday, however, gold prices remained supported as U.S. lawmakers failed to reach an agreement to raise the debt ceiling, which maintained the pressure on the U.S. dollar, and accordingly, gold prices remained well above $1600 an ounce.
Traders continue to target gold as a safe haven, especially since they doubt U.S. lawmakers will be able to reach a compromise deal to raise the debt ceiling and reduce the deficit before an August 2, deadline set by the U.S. Treasury Department, and so long as pessimism continues in markets, we should expect gold prices to gain more bullish momentum.
Friday July 29:
Friday will about the United States and the state of the faltering recovery and economic outlook. The advanced second quarter GDP will be the focus for investors this week at 12:30 GMT with the expectations growth slowed into the second quarter with 1.7% expansion following 1.9% in the first quarter. Personal consumption is expected to have slowed to 1.0% following 2.2% the previous quarter and Core PCE expected with a rise on the quarter by 2.3% following 1.6%.
U.S. data will continue at 13:45 GMT with the Chicago PMI for July and expected slightly lower at 60.0 from 61.1. Following will be the University of Michigan Consumer Confidence final estimate for July at 13:55 GMT and expected to be revised higher to 64.0 from 63.8.
Natural Gas Daily Fundamental Analysis
Natural gas prices declined on Thursday, despite expectations of warm weather conditions in the Midwest of the United States, as the EIA showed that natural gas storage change for the week ending July 22 rose above expectations.
Expectations of warm weather conditions should provide natural gas prices with bullish momentum, since it will lead to speculations of rising demand for power-plant fuel. Moreover, traders will be eyeing a storm which could develop into a tropical cyclone and that could push natural gas prices further to the upside.
Friday July 29:
Friday will about the United States and the state of the faltering recovery and economic outlook. The advanced second quarter GDP will be the focus for investors this week at 12:30 GMT with the expectations growth slowed into the second quarter with 1.7% expansion following 1.9% in the first quarter. Personal consumption is expected to have slowed to 1.0% following 2.2% the previous quarter and Core PCE expected with a rise on the quarter by 2.3% following 1.6%.
U.S. data will continue at 13:45 GMT with the Chicago PMI for July and expected slightly lower at 60.0 from 61.1. Following will be the University of Michigan Consumer Confidence final estimate for July at 13:55 GMT and expected to be revised higher to 64.0 from 63.8.
Crude Oil Daily Fundamental Analysis
Crude oil prices fell on Thursday after the EIA report showed on Wednesday that crude oil inventories rose last week by 2.3 million barrels, opposite to expectations of a decrease by 2.0 million barrels, and compared with the prior drop of 3.7 million barrels, which spread concerns over the outlook for demand and pushed crude oil prices lower.
Moreover, pessimism continued to dominate markets, since U.S. lawmakers failed to reach an agreement to raise the debt ceiling with less than one week left before a deadline after which the United States will default on its debt payments, which kept investors on their toes, and drove them away from risky assets, which put negative pressure on crude oil prices.
Traders will be focused on the latest developments in the United States regarding the debt ceiling deal, as the negotiations in Washington DC will remain the main focus for now, and if lawmakers fail to reach an agreement, we should expect crude oil prices to drop further.
Friday July 29:
Friday will about the United States and the state of the faltering recovery and economic outlook. The advanced second quarter GDP will be the focus for investors this week at 12:30 GMT with the expectations growth slowed into the second quarter with 1.7% expansion following 1.9% in the first quarter. Personal consumption is expected to have slowed to 1.0% following 2.2% the previous quarter and Core PCE expected with a rise on the quarter by 2.3% following 1.6%.
U.S. data will continue at 13:45 GMT with the Chicago PMI for July and expected slightly lower at 60.0 from 61.1. Following will be the University of Michigan Consumer Confidence final estimate for July at 13:55 GMT and expected to be revised higher to 64.0 from 63.8.
