The EU and ECB authorities say it is necessary to provide liquidity to European banks in order to avoid the disintegration of the eurozone.
Japan’s capital spending report came out almost 3 times as high as expected.
Analysts anticipate today’s US employment report to a 150K increase in May.
This morning, China’s manufacturing production index came out sharply worse than expected (slightly over 50). Market participants assume this is a proof that the eurozone crisis has major impact on the global economy. A decline in new manufacturing orders looks especially worrying. Analysts expect that the Chinese economic growth will slow down to 7.9% in Q2 2012.
Yesterday, gold was traded within a price range, unlike stocks. This can be explained through traders and investors’ expectations of another major increase in the EU or/and US money supply. Amid the Chinese economic slowdown and no support from India, central banks keep accumulating gold reserves.
Forecast.
According to the Commodity Trading Department of , gold may try to test 1564, 1568. A break and consolidation above 1565 will trigger a rally up to 1575, 1580. If an H1 bar closes above 1583, the rally may even hit 1595-1600. Alternatively, a failure to consolidate above 1565 may give way to 1550, 1540.
Silver is expected to resume the rally up to 28.0, 28.10, 28.25 if the price consolidates above 27.8. Alternatively, if the price fails to consolidate above 27.80 it will give way to 27.5, 27.25, 27.0.
