The French rate of employment increased in Q2 2012 despite the eurozone crisis. In the meantime, the 10-year Spanish bond yield touched 6.83%, the highest level since 1997. Italy to hold another bond auction tomorrow to the amount of 4.5 bn euro.
The leaders of Germany and Finland urged the southern eurozone states to keep implementing their austerity plans. They also confirmed their unwillingness to share the debt burden with the southern partners and the expense of emitting common Eurobonds. Most analysts assume that the ECB is unlikely to increase the eurozone liquidity without Germany’s support.
In the meantime, the US austerity plan seems to be paying off. The budget deficit has been reduced down to $124.6 bn. Today’s US retail sales report is expected to show a 0.2% decline.
Some experts expect capital markets to stay volatile till the end of the week in advance of another round of the parliamentary elections in Greece. The US Dollar may strengthen during the period as investors may well try to reduce their exposure.
Asian dealers report that jewelers are reserved in their reaction to the current market situation. They say the current price on physical gold is too high.
Forecast.
According to the Commodity Treading Department of , today gold may test the resistance level at 1614. If an H1 price bar closes above 1614, it will trigger a rally up to 1625, and maybe 1635. A failure to consolidate above 1614 will increase the probability going down to 1600, 1595, and maybe 1585.
As for silver, it is expected to test the level of resistance located at 28.95. On consolidating above 28.95, the price will trigger a rally up to 29.0, 29.25, 29.75. Alternatively, a failure to consolidate above 28.95 will intensify the downtrend, thus giving way to 28.5, 28.25, and maybe 28.0.
