The US consumer spending remained unchanged in December despite a 0.5% income increase. Therefore, Americans increased their savings. The basic rate of inflation increased by 0.2% in December. The ISM index showed the highest production growth since June 2011. Today most investors are waiting for the US unemployment report.
The US Mint reports that it sold 6.1M ounces of gold coins in January 2012.
Germany and the eurozone’s production indexes came out better than expected.
Japan’s money supply increased by 15% in comparison with 2011. However, according to Japan’s Ministry of Finance, the Japanese Yen is still too strong against the US dollar. The Japanese Minister of Finance asked the Bank of Japan to consider the possibility of further currency interventions in order to curb the JPY exchange rate and to increase the market liquidity. It should be noted that last year’s currency interventions conducted by the BoJ failed to weaken the Japanese Yen.
The trading volume in Shanghai, China’s biggest market of physical gold, reached 2640.2kg yesterday against 5636kg on Jan 31st.
Gold appreciated by 11% in January, the most successful January over the last 32 years. Italy’s biggest gold buyer is planning to open 150 new offices throughout the country. The scrap volume in Europe increased by 12% in 2011.
According to the Department of Commodity Trading of , in order to resume its rally, gold will need to consolidate above 1750. In this case, the price may rally up to 1762, 1775, and maybe 1800. Once the attempt fails, the price may decline down to 1725-1720, 1700.
Silver will have to consolidate above 33.80 in order to resume the rally up to 34.50, 34.70. Otherwise, it may decline down to 33, 32.40, and maybe 32.20.
