Investors are waiting for the ECB to start purchasing Italian and Spanish bonds. At this point, it seems that the ECB will manage to agree on the issue with all the eurozone members, including Germany.
Investors are also evaluating the chances of the Federal Reserve’s further economic stimuli. Some of them say the FRS will start acting in September while others say any crucial steps in advance of the forthcoming presidential elections are unlikely.
China keeps boosting its gold production. The country produced 36.3 tons of gold in June and 177 tons in the first half of the year. This is a 7.7% increase as compared to 2011. At the same time, the production of gold in Russia declined by 2.4% down to 79.2 tons over the same period.
Meanwhile, Standard Chartered Plc, a major British bank, is accused of cooperating with Iran despite the sanctions. Now it may be deprived of its banking license in the state of New York.
Today’s forecast:
According to the Commodity Trading Department of , gold may test 1625, 1629-1630. A failure to consolidate above 1621 will bring the price back to 1614. If an H1 price bar closes below 1614, it will give way to 1606, 1600.
Silver may test the resistance at 28.0. A break above 28.0 will trigger a rally up to 28.25, and maybe 28.50. A failure to consolidate above 28.0 will give way to 27.75, and maybe 27.50, 27.25.
