Judging by the Euro Group’s draft statement, the EU authorities are determined to expand the eurozone’s stabilization funds (EFSF and ESM) up to 940B euro. If this expansion does take place, the IMF will get a stimulus to help the eurozone.
Amid concerns over China’s economic slowdown, the Chinese currency and stocks depreciated yesterday.
Japan’s gradual economic recovery from the consequences of last year’s natural disasters stimulated consumer demand, this making the retail sales report come out better than expected (+3.5%).
Goldman Sachs has lowered the forecast for commodities demand, leaving the forecast for gold and crude oil unchanged.
Analysts say there is an increase in the demand for palladium. The global motor industry accounts for 65% of the demand.
Indian jewelers are determined to continue the protests until the government cancels the duties on non-brand jewelry. As a result, India’s import of gold may decline by 59% this quarter.
According to the Commodity Trading Department of , if an H1 price bar closes below1660, it will trigger the downward scenario with probable targets around 1650, 1637, 1625. Otherwise, a rally up to 1675-1678, 1685 will be highly probable.
As for silver, if an H1 price bar closes below 31.9, it will accelerate the downswing. The closest levels of support are 31.75, 31.50, 31.40, 31.0. Otherwise, the price may well start a rally up to 32.25, 32.50, 32.75.
