Edward Culchenko
Today, the ECB President and the Secretary of the US treasury are to meet in advance of the forthcoming ECB meeting scheduled for August 2nd. Mario Draghi is looking for allies to overcome the resistance coming from the Deutsche Bundesbank. The German central bank resists the ECB’s intension to purchase risky eurozone bonds at the expense of increasing its balance sheet. The European Central Bank is also expected to keep writing down the Greek debt.
However, this week’s major focus is the results of the FOMC meeting. Most investors and speculators keep waiting for the Federal Reserve to respond to the economic situation in the USA. Others say the central bank won’t do anything until the forthcoming presidential elections are over.
Japan’s industrial production index has shown an unexpected decline for the 2nd month in a row. There are increasing expectations that the Bank of Japan will expand the bond purchase program in September.
This will is rich in major news reports and therefore is expected to be volatile for the market of precious metals.
Today’s forecast:
According to the Commodity Trading Department of , gold is expected to test the support at 1620. If an H1 price bar closes below 1620, this will increase the probability of going down to 1615, 1610, and maybe 1600. A failure to consolidate below 1620 will probably resume the rally up to 1630-1631, while a break above 1631 will give way to 1635.
Silver may test the support at 27.5-27.48. A break below 27.48 will give way to 27.35, 27.25 and maybe 28.10. A failure to consolidate below 27.48 will result in the price going up to 27.75, while a break above 27.75, may push the price up to 28.0.
Edward Culchenko
