Here are the key factors to keep in mind today for gold trades:

• Chinese Industrial Profits: China’s industrial sector came under water in June as annualized profits dropped by 0.30%. This dropped the two-month moving average to a gain of just 0.15% as May’s annualized industrial profits remained unrevised at 0.6%.
• German Import Price Index: Deflation in the Eurozone is set to increase in June with the largest Eurozone economy set to report a contraction of 0.3% in its Import Price Index monthly and 1.3% annualized. Forex traders can compare this to the 0.2% contraction which was reported in May and to the annualized contraction of 0.8%.
• German IFO Report: Economists expect today’s IFO report to show a broad-based slowdown in Germany. The IFO Business Climate Indicator is expected to come in at 107.2 for July, down from June’s level of 107.4. The IFO Current Assessment Indicator is expected to come in at 112.9 for July, down from June’s level of 113.1. The IFO Expectations Indicator is expected to come in at 101.8 for July, down from June’s level of 102.0. Gold could benefit if the expected slowdown in today’s IFO report will be confirmed.
• Eurozone Money Supply (M3): M3 Money Supply in the Eurozone likely rose by 0.1% for the three-months ending June and annualized as expectations call for a level of 5.1%. This can be compared to the 5.0% level which was previously reported. Increased money supply will act as a bullish factor for commodities such as gold.
• US Durable Goods Orders: Economists expect a rebound in durable goods orders out of the US. Durable goods orders are expected to increase by 3.2% for June which forex traders can compare to the expected revised contraction of 2.2% for May. Durable goods orders excluding transportation are expected to increase by 0.5% in June after an expected flat reading for May. Capital goods orders excluding defense and aircraft are expected to rise by 0.5% in June after posting a contraction of 0.4% in May. Capital goods shipments excluding defense and aircraft are expected to rise by 0.6% in June after posting a contraction of 0.1% in May. The expected downward revisions to May should not be ignored and could allow gold to rally.

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