Ben Bernanke, Chairman of the Federal Reserve, supports the idea of maintaining low interest rates until late 2014 despite better employment stats. In order to change his mind, he needs the pace of economic growth to accelerate. Other factors are better employment readings or inflation risks. This year the US economy is expected to grow by 2.2-2.7% while the level of unemployment may reach 8.2-8.5%.
The US consumer spending accelerated in December, thus outpacing the forecast by nearly 100%. This is the biggest growth since Nov 2011.
Some experts assume that China may contribute up to 100B euro to the EFSF in order to help the eurozone solve its debt problems.
Greece’s Premier is going to halve talks with the leaders of opposing parties on budget spending reduction in order to meet the EU’s requirements to get another tranche.
Credit Suisse and LBS have recently conducted a survey. According to it, stocks are the best assets to withstand inflation.
South Africa has downgraded its platinum production forecast due to multiple labor conflicts and production safety issues.
China’s import of gold from Hong Kong tripled in 2011, thus reaching 427.877 ton. However, the import declined 62% in December in comparison with November.
According to Norilsk Nickel, the investment potential of platinum metals can be higher than the one of gold. Currently, only 8% of platinum and 14% of palladium is accumulated for investment purposes as opposed to 35% for gold. The global reserves of platinum metals are much scantier than the gold reserves.
According to the Department of Commodity Trading of , today gold may rally up to 1761, 1765. A break above the monthly low will increase the probability of hitting 1800. The closest support is 1725. The probability of testing 1725 will increase if the price closes below 1747.
As for silver, its inability to consolidate above 34.25 will give way to 34, 33.80, 33.50. In order to resume the rally, it will have to consolidate above 34.41 (the current monthly high). After that, $35/oz will become the closest target.
