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GOLD could be CLOBBERED, Euro to ease, GBP BIAS on Up – March 14

March 14, 2013

GMT 3;15 – EURO @ 1.2965 = Should hold around 1.2980-90 for a test of 1.2910-20 levels, break will encourage for 1.2880. The key level on up is 1.3040.
GMT 3:25 –  GBP @ 1.4944 =
 Potentially should hold 1.4910-20 levels and 1.4870 is unlikely to surrender, but needs to move beyond 1.4998 for more gains.
GMT 3:30 – JPY @ 95.87 = As long as hold below 96.50, Yen may not surpass 96.25-30 levels. Gains for Japanese currency could accelerate on break of 95.30, which could only be possible if 95.60 surrenders.
GMT 3:34 – AUD 1.0365 = Aussie is still looking good and should hold 1.0325-35 levels for test of 1.0390-00 zones. or else 1.0310 before up again  
GMT 8:10 – GOLD @ $ 1587 = 
Should hold below 1590-92 and as long as $ 1598 does not break, see risk for a fall. Break of $ 1578-80 risk for sharp fall for $ 1570. Test of $ 1558-60 looks a possibility

GMT 8:10 – GOLD @ $ 1587 = US economic data has once again shown signs of recovery. The positive angle about the retail sales data is that despite amendments in the tax rate policy consumer activity did not shy away suggesting confidence in economy. The continuing economic trend should help rise in GDP growth that should also push inflation higher. This also increases the probability of Hawkish view of earlier rollback of FED’s easing policy.
But we should not ignore the impact of sequester, which is still unknown, as some of the calculations suggest that it can crimp growth and this negates the idea of earlier unwinding of easing policy. FED voting members may re-think earlier rollback of its easing policy because the US economy is on continued up move and hence, doing away with easing policy at this point could spoil all the hard work. 
Meanwhile, economic data’s to be released in Europe and USA will give some more hint about the progress in two-continent. Care should be taken by gold investors as there are some concerning news reported by Wall Street Journal that the top U.S. derivatives regulator are having internal discussions on whether the daily setting of gold and silver prices in London is open to manipulation though  The Commodity Futures Trading Commission did not launch formal investigation, but are looking at the price fixing mechanism form various angle. This could be bad news for gold, which may come under sever selling pressure.

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