Europe’s economic sentiment index keeps showing weakness. Germany’s index does the same.
Yesterday, Ben Bernanke expressed his concerns over the US rate of unemployment. However, he didn’t hint at any further economic stimuli, including quantitative easing. However, if there is further unemployment growth along with deflation risks, the Federal Reserve will be determined to act. Today, Ben Bernanke is going to give another speech. Analysts will be waiting for hits again.
Despite a major decline in retail sales, consumer prices in the USA keep growing. The US manufacturing production is growing as well.
At the same, time, the Chinese Premier Minister expresses his concerns over the unfavorable situation in the Chinese labor market.
Today’s forecast:
According to the Commodity Trading Department of , gold will probably be testing the closest level of support at 1575. On consolidating below it, the price is expected to go down to 1565-1566, or even 1550. A failure to do consolidate below 1575, attended by a break above 1585, will trigger the bullish scenario. If this is the case, the closest levels of resistance will be found at 1595-1600.
Silver is expected to test 26.90-27.0. A break and consolidation below 26.90, will give way to 26.75, or even 26.50. Alternatively, a failure to consolidate below 27.0 may trigger a rally up to 27.25-27.30.
