Germany’s CPI slowed down as PPI went down as well. Obviously, the current recession hinders the demand in all the economic sectors. The season of quarterly reports in Europe has been positive so far. European companies managed to earn 8% more than expected by analysts.
Today, the European finance ministers are expected to decide on the €100 bn tranche to Spain in order to help the southern eurozone member recapitalize its banking system. The German parliament backed the plan to help Spain .
Yesterday, the US unemployment claims report showed a considerable increase, which outpaced the gloomiest expectations. The consumer confidence index came out negative as well. New orders have been shrinking for 3 months in a row. The US industrial production slowed down to 1.45 a year. More and more US companies are afraid of a sharp slowdown due to tax hikes and spending cuts.
Hundreds of Chinese companies report about lower incomes in the first half of 2012. This fact may increase the pressure on the Chinese authorities as they will have to cut corporate taxes.
Today’s forecast:
According to the Commodity Trading Department of , gold may test 1580. If the price consolidates below 1580, the price is expected to go further down to 1575, 1565, and maybe even 1550. Alternatively, a failure to consolidate below1580, attended by a break above 1584 may well trigger a rally up to 1592, 1600.
As for silver, it is expected to test the resistance are around 27.22-27.25. If an H1 bar fails to close above 27.25, the price is expected to accelerate the downtrend. If this is the case, the closest levels of support will be found at 26.90-27.0, 26.75, 26.50.
