Market participants are looking forward to the EU summit, which is to take place later this week. Most of them doubt that European leaders will manage to find a way out of the continued eurozone crisis. Angela Merkel refused to emit common Eurobonds once again. Cyprus followed Spain to ask for external financial support for its banking system.
In the meantime, the US new home sales report showed another increase yesterday. The US congressmen are currently discussing the possibility of postponing the public spending reduction plan. The $1.2-trillion plan is to take effect in January 2013. The congressmen want to postpone it till March. This may suggests extra concerns over the current state of affairs in the US economy.
Amid global uncertainty, Swiss banks are getting more popular.
South Korea has recently confirmed its intension to stop the import of crude oil from Iran on July 1st.
The gold premium in Asia remains stable between $0.5-0.8 per ounce. The demand for physical gold remains low.
Today’s forecast:
According to the Commodity Trading Department of , gold will probably test the resistance at 1589. A break and consolidation above 1589 will give way to 1600, 1605, maybe 1615. Alternatively, a failure to consolidate above 1589 may start a bearish move down to 1575-1570.
Silver is expected to test 27.50. If an H1 price bar consolidates above 27.55, it will give way to 27.75, 28.0. A failure to consolidate above 27.55, may well initiate a bearish move down to 27.25, 27.0.
