Today’s major news are coming for the eurozone: The Greek elections were won by the parties that had supported the austerity plan. The victory gives them an opportunity to form a coalition government just in time for getting another tranche form the EU. Therefore, the negative scenario failed: Greece seems to stay in the eurozone.
Over the last 12 months, the eurozone instability has helped the US dollar to strengthen as most investors and central banks fled the Euro currency. Some of them increased the share of the US currency in their currency reserves up to 60% and more.
The G20 summit held over the weekend was dedicated mainly to the ways and means of stabilizing the situation in the crisis-ridden eurozone as the major risk for the global economy.
In the meantime, some analysts expect the Fed Reserve to expand “Operation Twist’ by $120 billion.
China has published its housing price report. There was a major decline in most Chinese cities.
Gold slightly depreciated after the positive news from Greece. However, this week’s major event is the FOMC meeting scheduled for June 19th-20th.
India and China are seeing a period of standstill in their jewelry industries. The closest major holidays are to take place in October. Some experts say, that this factor (along with lower purchases of gold by central banks) resulted in excessive supply in the global market of gold, which is estimated at 400 tons.
Forecast.
According to the Commodity Trading Department of , today gold may re-test 1628-1629. If an H1 price bar consolidates above 1629, it may well trigger a rally up to 1635, 1640, and maybe 1650. Alternatively ,a failure to consolidate above 1629, may initiate a bearish movement down to 1610, 1600, 1595.
Silver may re-test the 28.75 resistance. On consolidating above 28.75, the price may hit 29.0, 29.25, 29.50. A failure to consolidate above 28.75 will give way to 28.50, 28.275, 28.0. For now, the bearish scenario looks more probable.
