China’s PMI report surprised everyone with the highest growth in 8 months. However, China’s new export orders declined in January. Asian dealers report about this week’s low demand for physical gold.
20 out of 34 biggest European companies (which are included in the Stoxx 600 index) that published their reports on Jan 9th, failed to come up to analysts’ expectations by showing poorer financial performance than expected.
The Portuguese T-bond yield has recently increased up to 17%.
According to Barclays Capital, in 2012 the manufacturing industry will use 15,415 tons of silver, which is 2.5% more than in 2011. Analysts say this will help to reduce the extra supply of silver down to 3,297 tons.
The CIA reports that Saudi Arabia has increased its oil production and is able to make up for the lack of crude oil caused by the embargo on the supplies from Iran.
The US consumer confidence report came out worse than expected, which came as a surprise. The Office of Budget of the US Congress expects the US budget deficit to exceed $1 trillion for the 4th consecutive year in a row.
According to the Department of Commodity Trading of , gold may resume its rally up to 1761, 1775, and maybe 1800 if an H1 bar closes above 1748. If it closes below 1740, it will probably trigger a downswing to 1733, 1725, 1700.
Silver has all chances to rally as well if an H1 bar closes above 33.90. The targets are 34.50, 34.70. Once the price consolidates below 33.55, the price may well decline down to 33 and maybe even 32.40.
