US industrial production was unchanged last month, while market analysts anticipated an increase, official figures revealed on Friday. The Federal Reserve reported factory production came in at 0.0% in February, falling behind analysts' expectations for a gain of 0.3%. Meanwhile, January's initially reported drop of 0.3% was revised to a 0.1% fall. However, manufacturing production, which accounts for 75% of overall industrial output, posted a 0.5% increase in February that matched the preceding month's rise. A global economic recovery, stronger business investment in equipment and appropriate inventory levels allowed manufacturers to gain momentum over the last several months.
The advance in manufacturing output was in line with analysts' forecasts. Data also showed utility output decreased 5.7%, following a 5.8% decline in January. The fall was mainly driven by unusually warm temperatures. Mining production rose 2.7% last month, boosted by oil and gas drilling. Business equipment output advanced 0.7% in February, compared to a 0.1% decline registered in the prior month, whereas production of construction supplies increased 1.3% after climbing 1.4% in January. Other data released on Friday showed mood of American shoppers jumped to 97.6 in March, according to the preliminary reading released by the University of Michigan.
Upcoming events: Minor US events
During Tuesday's trading session there are a few fundamental events set to take place, which might affect the financial markets. However, the possibility of the market being shaken during today's trading are quite low. The reason for that is that the only events are the FOMC Member's Dudley's Speech at 10:35 GMT and the US Current Account release at 12:30 GMT.
Gold drops below 1,230 level
Daily chart: During the early hours of Tuesday's trading session the yellow metal's price declined and fell below the 1,230 mark. This seems to be a consolidation of positions in the aftermath of a steady surge of more than three percent since the start of last Tuesday's trading session. It is most likely that the bullion will soon make an attempt of breaking the monthly PP, which is located at the 1,236.39 level. However, it is also possible that the commodity price will first retreat down to the 20-day SMA, which was located at 1,222.94 on Tuesday morning.Markets remain bullish
Spreads (avg,pip) / Trading volume / Volatility
Market participants foresee the price of Gold being at 1,300 in April
Traders who were asked regarding their longer-term views on gold between February 21 and March 21 expect, on average, to see the metal near 1,300 in April. Generally, 50% (+3%) of participants believe the price will be above 1,300 in ninety days. Alongside, 35% (-3%) of those surveyed reckon the currencies will trade in the range between 1,100 and 1,300 over the next three months.