Yesterday the prime Minister of Italy said that Spain might escalate the eurozone debt crisis. Italy is planning to place its bonds to the amount of 7.5B euro during this week’s auction. The Euro Commission is pondering on how to expand the EFSF in order to secure the eurozone against a possible default.
The ECB is not planning to provide extra long-term loans. Prior to providing more loans, the central bank is planning to consider the efficiency and distribution of the previous loans. The loans have failed to increase the rate of inflation so far – it is still 2.7%. Therefore, the ECB President’s speech (scheduled for today) is unlikely to bring any unexpected news.
Political risks slightly increased after the failed talks between the US authorities and Taliban. Today investors are looking forward to Ben Bernanke’s speech as they that the Chairman will hint at the Fed Reserve’s further plans. Nevertheless, with 6-month of employment growth, surprises are unlikely.
According to the Commodity Trading Department of , today gold is losing its value. The downswing may intensify if an H1 price bar closes below 1659. In this case, the probable targets will be 1650-1647, 1636, 1625. Otherwise, if there is a break and consolidation above 1662.5 may well trigger a rally up to 1675, 1700. The bearish scenario looks more probable at this point.
As for silver, it is also seeing a downtrend. It will intensify on breaking below 32.1. The closest levels of support are 31.85, 31.50. A break and consolidation above 32.25 will trigger the bullish scenario with targets around 32.50, 32.95-33.
