Angela Merkel says there is a lot to be done before we can say that the European project will be successful. The statement strengthened the Japanese Yen and the US Dollar because it was interpreted by speculators as a sign of uncertainty.
Bernanke didn’t make any hits at QE during yesterday’s report in the US Senate. The US housing market keeps showing a price rally.
The Chinese authorities are currently considering the possibility of allowing Chinese to trade gold in the interbank market. The possible date is August 31st.
India’s consumer price index increased by 10% in June. The import of gold declined by more than 50% in Q2 2012. The current quarter is expected to show another decline, this time by 30% (y/y).
The political risks escalated after the explosion in Bulgaria. Israel blames Iran for the incident and is going to ask the UN to toughen the sanctions against the Islamic country.
The protests in South Africa’s mines result in lower production of platinum. Some analysts say the price of platinum may rally up to $1650/oz in late 2012.
Today’s forecast:
According to the Commodity Trading Department of , gold may test the support area around 1570-1571. On consolidating below 1569, the price is expected to go down to 1565-1566, or even 1550. A failure to consolidate below 1570, attended by a break above 1580, will trigger a rally up to 1595-1600.
As for silver, it is expected to test 27.10. On consolidating below 27.05, the price may well go down to 26.75, and maybe 26.50. Alternatively, a failure to consolidate below 27.05 may result in the price testing 27.25-27.35 while a break above 27.35 will give way to 27.50, 27.75.
