Yesterday the ECB hinted at the possibility of extending its bond purchase program in order to calm down investors. Today Italy is to hold another bond auction to the amount of 5B euro. Investors will be monitoring the yield.
The Federal Reserve pointed out the moderate growth of the US economy and the risks concerned with higher prices on energy carriers. The budget spending report revealed a $2M increase in the budget deficit as compared to the previous month.
As Alcoa’s quarterly report surprised everyone with unexpected incomes, US stocks replied with a rally.
The World Bank has just lowered the forecast for China’s economic growth in 2012 down to 8.2%, which is the lowest level in 13 years. The major reason is considerably lower export. China’s trade balance surplus is expected to make only 3.1% of the national GDP against 3.4% seen in 2011.
Yesterday the Bank of Japan announced its decision to continue stimulating of the national economy by monetary means in order to curb the deflation.
Gold Fields Mineral Services (GFMS) has just released another gold forecast. The analysts say the price may temporarily exceed $2000/oz in 2013. This year the price of gold is expected to be fluctuating within the 1530-1920 range. The average price is set at $1730/oz. GFMS points out the excessive supply in the gold market, which is estimated at $130B. Central banks are expected to buy as much gold as last year. On the contrary, jewelers will probably show lower demand for gold in 2012.
According to the Commodity Trading Department of , a break and consolidation above 1662 will trigger another gold rally up to 1675, 1681. Alternatively, the price will get a chance to decline down to 1644-1645, 1625.
Silver has been traded in the 31-32 price range over the last few days. A break out of the range will determine the direction of the future short-term trend. A break and consolidation below 31.50 will trigger the bearish scenario with probable targets around 31.25, 31.10, 31.0. If this is not the case, alternatively, the price may start another rally (if the price consolidates above 31.70) or to stay flattish. The closest levels of resistance are 31.75, 31.90, 32.0.
