The financial aid provided to Spanish banks doesn’t seem to have given investors much optimism. Yesterday, stock and commodity markets closed with a decline. Investors are still waiting for steps that could revive the eurozone economy instead of continuous and ineffective efforts to close another financial gap. Investors start showing signs of concern over the situation in Italy, which is planning to hold another bond auction on June 14th, 2012.
3 Fed Reserve members expressed their concerns over the eurozone’s slow reaction to the necessity of reviving the economic growth.
In the meantime, during yesterday’s official statement, the IMF almost openly urged the bank of Japan to initiate another series of currency interventions in order to curb the strengthening of the Japanese Yen.
The USA keeps increasing its pressure on Iran. India, South Korea, Turkey, South Africa and some other countries joined the embargo on the export of crude oil from Iran.
So far, the major factor influencing the price of gold is the forthcoming FOMC meeting, which is expected to cast light on the Fed Reserve’s near-term monetary policy.
Forecast.
According to the Commodity Trading Department of , today gold may test the support area around 1587-1588. If an H1 price bar closes below 1587, it may trigger the bearish scenario, thus giving way to 1575, 1565. A failure to consolidate below 1587 will increase the probability going up to 1600, 1625, 1635.
As for silver, the price may retest the 28.60 resistance. On consolidating above 28.62, the price will probably start a rally up to 28.75, 29.0, 29.25. A failure to consolidate above 28.62 will increase the probability of going down to 28.25, 28.0, 27.75.
