Yesterday’s US unemployment stats confirmed the stable recovery of the world’s largest economy once again. The US inflation report is scheduled for today. The forecast is +0.4%, the highest increase in 10 months. It is explained by higher fuel prices.
China increased its investments in US bonds in January for the first time since July 2011. Japan did the same.
As for the eurozone, its unemployment report came out negative, thus confirming the economic stagnation in the region.
Hong Kong dealers report about higher demand for gold mainly caused by jewelers. Investors have switched to stocks.
FORECAST
According to the Commodity Trading department of , today gold may continue its rally up to 1680 and maybe 1688. If an H1 bar closes below 1658, it will trigger the bearish scenario with possible targets around 1650-1647 and maybe even 1630-1625.
As for silver, once the price consolidates above 32.73, it will trigger the bullish scenario with targets around 33, 33.2. Until then, the bearish scenario holds true, especially if the price consolidates below 32.5. The closest probable targets of the downswing are 32.3, 32.0, 31.625, 31.50.
