Spanish bond yields are growing again. Yesterday, the 10-year bond yield exceeded 7.5%. Moody’s Investors Service changed the forecast for the German and Dutch economies to negative. Today, investors are looking forward to the eurozone’s service PMI report.
The US secretary of the Treasury warned the Us government against the automatic implementation of the budget spending cuts and tax hikes planned for the end of 2012. These measures are expected to cause another economic slowdown in the USA (-1.3% more). This week, the US Congress is to discuss the possibility of extending the tax rebates.
In the meantime, China’s PMI has gained a little but is still below 50. Most investors say this is a sign confirming that the Chinese economic slowdown is suspended.
The demand for physical gold in India remains low. Singaporean dealers report that the demand for gold may recover if the price falls below $1560/oz. China’s import of silver declined by 23.6% in June while the import of platinum increased by 31%.
According to the Commodity Trading Department of , gold will probably test the resistance area around 1578-1579. If an h1 price bar closes above 1579, the price will probably initiate a rally up to 1592, 1596, 1600. Alternatively, a failure to consolidate above 1579, followed by a break below 1575, will trigger a bearish move down to 1570, 1563, 1555.
Silver is expected to test 27.05-27.10. A break above 27.10 will give way to 27.25-27.30. A break above 27.35 will give way to 27.50-27.75. A failure to consolidate above 27.10, followed by a break below 26.90, will give way to 26.75, 26.50.
