It was reported on 3 September 2013 that the British pound had continued to make gains against the Eurozone’s currency, reaching a three month high in trading. Many experts have pointed to the continued growth during August for the UK’s construction sector which exhibited expanded figures for a fourth straight month.

Analysts note that this growth reaches levels of construction in the UK which have not been seen for nearly six years, perhaps indicating that the recovery efforts may in fact be showing results. This news comes as the Bank of England prepares to enter into meetings where they will decide on both the level of asset purchases as well as the interest rates for the month of September.

At this time, many experts do not believe that the Monetary Policy Committee will be inclined to make any shifts to the stimulus which currently stands at 375 billion pounds, nor to the record low interest rates.

While analysts believe that the pound will likely continue to rise against the Euro in the coming days, traders are advised to continue to proceed with caution as the release of the Eurozone’s GDP for Q2 are set to be released tomorrow and may lead to additional volatility in the market.

Eurozone and Australia to Release Q2 GDP Tomorrow

The reports covering the Gross Domestic Products for the Eurozone and Australia respectively are expected to be issued tomorrow 4 September 2013. At this time, many experts do not believe that there will likely be shifts in either report in comparison to the previous quarter.

Analysts remind readers of the significance surrounding the GDP report as it can cause major ripples in a country’s economic outlook as well as affect the value of their currency in trading against its peers.

Observers of the aforementioned two economies should be aware of the various difficulties that they have faced over the past two quarters. While the major players such as Germany and France have helped to boost up the averages for the Eurozone, other member states such as Greece, Portugal and Spain have served to pull down the monetary union’s figures as they struggle to remain afloat. For its part, Australia has been attempting to return to levels of growth but has constantly struggled as investors have turned to the Aussie for short selling purposes. In addition, stunted job growth in Australia has further restricted the rebound despite efforts to make Australian goods more desirable through a measured devaluation of the currency.

Investors are advised caution in attempting to trade with both the Euro and the Aussie in the coming days as there is an increased likelihood of volatility that may influence the markets following the issuance of the reports.

Gold Prices Drop on Reports of Missile Fire Near Syria

The price of gold is said to have fallen over the course of the past four days as tension over the looming conflict in Syria has continued to grow. Trader confidence in the precious metal is said to have been further hit in reaction to reports by Russian defense officials on 3 September 2013 that two ballistic missiles had been detected fired in the region of the eastern Mediterranean Sea.

Readers are reminded of the looming threat of an American lead involvement in war torn Syria following accusations by the international community that the regime of Bashar al-Assad used chemical weapons against civilian targets. Despite the high level of bellicose rhetoric emanating from the White House over the course of the past week, it is unknown at this point what actions the West will take against Syria and when they may decide to act. Added tension in this conflict has come from concerns that other powers including Russia and Iran may come to back up their Syrian ally, further inflaming the situation.

Moreover, analysts note that the price has been affected by trader confidence in the US dollar which has succeeded in making continued gains.

Traders are advised to proceed in their trading of gold with extreme caution due to the continuous fluctuations that have been witnessed in the market over the course of the past week. As the US dollar grows stronger, gold will likely face devaluation. Both assets should be observed with care.