Yesterday markets retraced amid uncertainty over the Greek bond swap. The IIF released its report to show the devastating results of a possible Greek default if the bondholders refuse to participate in the bond swap. This report definitely scared investors, thus making them risk-averse.
The eurozone economy keeps stagnating. Numerous reports on retail sales and manufacturing production confirm that.
Yesterday Catherine Ashton, the EU's High Representative of the Union for Foreign Affairs and Security Policy, announced another round of nuclear talks between Iran and 6 major powers: USA, Russia, China, France, UK and Germany. The date and place will be specified later. These are going to be the first nuclear talks in 12 months.
Yesterday gold was depreciating together with stocks. The decline slightly stimulated the purchases of physical gold by jewelers. The gold premium in Hong Kong increased from $1 up to $1.5 per ounce earlier this week. The same situation can be seen in Singapore and Indonesia. In January China imported from Hong Kong 32.948 tons of gold (15% less than in Dec 2011).
According to the Department of Commodity Trading of , today gold may test 1687-1690, with further retracement. If the price consolidates above 1692 it will probably test 1700-1705. The closest level of support is 1672. On consolidating below it, the price may continue the declining down to 1640-1644,1625.
Silver will probably test 33.35-33.50. If the test is successful, the price may reach 33.75. Alternatively, the price may decline down to 32.80. Once an H1 bar closes below 32.78, the price may go further down to 32.50 and even 32.0.
