Coincidence or not as U.S. data continues to reinforce the notion that its economy is not all wine and roses the price of Gold slumps. The precious metal this weekend finds itself near 1246.00 USD as it waits for June trading to begin in several hours via Asia. The GDP figures from the States on Thursday confirmed what has been suspected by Digital Markets Advisor, meaning that the U.S. economy is struggling. And no matter what the White House administrations says or the Federal Reserve does there is enough proof in the pudding that indicates hurdles remain to be navigated and rough water could be ahead for the Americans.

The EUR entered the weekend on a stronger note and it will be interesting to see what will become of the Single Currency this week, while the notion exists that the Federal Reserve may have to change its public stance and admit that the U.S. economy is not as strong as had been hoped.

Inflation continues to be very tame and this is one of the big factors behind the demise of the higher prices in Gold. While the global recession continues to kick at the heels of the world’s largest economic giants commodity prices are likely to find diminished demand. German Preliminary CPI will be released tomorrow and this could serve as a tonic for Gold traders if it were to come out with a stronger number than expected, but that is doubtful. While some traders will certainly continue to speculate and go long Gold because it appears cheap, fundamental numbers have taken many long-term investors out of the ballgame until they sniff a change from inflation data.

PMI marks will come from Spain and Italy tomorrow via the Manufacturing sector. And importantly the ISM Manufacturing PMI reading will come from the States also on Monday.

June appears ready to be a pivotal month for traders. Investors may have been hoping for tranquillity in the broad markets, but last week’s U.S. GDP results has officially put everyone on notice. While the global equities have certainly provided joy for many financial institutions due to their record-breaking performances, the FX and commodity markets have proven challenging terrains. We suspect the EUR and GBP may trader higher this week due to the suspicions surrounding the American economy.