Yesterday investors were nervous about the news that China’s demand for iron ore had slowed down. They interpreted it as a sign indicating a slowdown in China’s economy.
Yesterday the USA reported that Japan and 10 EU countries had met all the requirements concerning the embargo on the export of crude oil from Iran (unlike China, India and South Korea) and consequently they won’t see any economic sanctions imposed on them. This creates extra tensions in advance of another round of nuclear talks between Iran and the Western alliance.
In the meantime, investors keep monitoring the growth seen in the market of the US T-bond yield. Yesterday Ben Bernanke told that the Fed Reserve was still uncertain whether to start another round of quantitative easing (QE3) or not.
A couple of days ago India increased its gold import duty, which may cut the gold import from $58B down to $38B in the next financial year, which starts on April 1st.
Forecast:
According to the Commodity Trading Department of , gold is flattish. If an H1 bar closes above 1655, it will trigger the bullish scenario with targets around 1665, 1675. Once it closes below 1648, the price may go down to 1625, 1600, especially if it consolidates below 1647.
As for silver, it is flattish as well. A break above 32.30 will trigger the bullish scenario with possible targets around 32.50, 32.80, 33. Otherwise, if the price consolidates below 32, the next levels of support will be 31.80, 31.50, 31.25.
