During yesterday’s meeting the eurozone finance ministers denied the request made by Greek investors. The investors ask for a 4% coupon for new bonds. Greece says it cannot pay more than 3.5%. The finance minister also supported the full embargo against Iran, which will take effect on July 1st 2012. Europe will also freeze the assets that belong to the Bank of Iran and 8 other holders.
Yesterday S&P downgraded the credit ratings of 2 French banks - Societe Generale and Credit Agricole. The demand for Italian T-bonds grew as the yield declined down to 6.17%.
The US Navy sent its aircraft carrier Abraham Lincoln to the Persian Gulf through the Strait of Hormuz.
India has finally determined the prices for import of gold and silver - $526 per 10 grams of gold and $953 per kilo of silver. India’s central bank has left its interest rate unchanged. However, the rate of inflation in India is still high – 7.47%. At the end of the current financial year (it ends on March 31st) the economic growth is expected to reach 7% while the rate of inflation is expected to hit 8.8%.
The Bank of Japan has downgraded its economic forecast down to 2%, thus leaving the key interest rate unchanged. The budget deficit (excluding the expenses on servicing the public debt) is expected to reach 3.1% by the end of this financial year.
According to the World Gold Council, in 2011 central banks purchased the record amount of gold.
Forecast: According to the Department of Commodity Trading of , today gold may retrace. The targets are 1664, 1658. The closest levels of resistance are 1677-1678. If an H1 bar closes above 1678.50, it may resume the rally, with targets around 1686, 1698-1700, and maybe 1716.
As for silver, today the price is probably going to retrace as well. If it fails to consolidate above 32.30, this may initiate a retracement wave down to 32, 31.67, 31.50, and maybe 30.45. If an H1 bar closes above 32.40, it may trigger the bullish scenario. The targets are 33-33.10, and maybe 33.50, 33.75.
