Yesterday’s speech made by Ben Bernanke seems to have given financial markets to understand that there is a need to stimulate the US economy. The Chairman mentioned a necessity to accelerate the US economic growth and said the current employment growth might be temporary. The US GDP growth in Q1 2012 is expected to slow down to 2% or less after the 3% growth seen in Q4 2011.
Germany has shown an unexpected improvement in business climate and sentiments. The German authorities look determined to temporarily expand the EFSF. This allowed Italy and Spain to lower their bond yields. Nevertheless, the situation in the peripheral eurozone countries remains unstable.
Japanese analysts expect the Bank of Japan to take a break from stimulating the country’s economy. The expectations are based on more positive economic stats and sentiments. Japan’s GDP is expected to increase by 1.7% this quarter.
China’s manufacturers are seeing an income decline by 5.2%, which is the first decline since 2009. It is caused mainly by lower exports. This may be another reason for the People’s bank of China to start easing its monetary policy.
Russia’s gold production growth may slow down from 3.6% to 3% (or 7.01M ounces) this year. Against this background, gold and silver gained 1.5%.
According to the Commodity Trading Department of , gold keeps rallying. The rally will intensify once the price consolidates above 1690. The probable targets are 1710, 1720, and 1735. If an H1 bar closes below 1685, it will trigger the bearish scenario. The closest levels of support are 1670, 1662, 1650.
As for silver, it is rallying as well. The rally will intensify if the price consolidates above 33.0. The probable targets are 33.50, 33.75, 33.95. If an H1 bar closes below 32.75, it will trigger the bearish scenario. The closest levels of support are 32.50, 32.25.
