During yesterday’s speech, Ben Bernanke said that the economic recovery was fragile while the impact of the eurozone crisis on the US economy was immense. One of the FRS members said that the Federal Reserve should purchase as much US bonds and for as long time as needed to stabilize the economic growth. Yesterday’s consumer lending report showed a sharp decline against the forecast and the previous readings. This may result in a decline in retail sales.
Angela Merkel backed the ECB’s bond purchase plan. Amid a weaker euro, Germany’s trade balance came out better than expected. On the contrary, France released a worse-than-expected balance. The deficit increased. Germany’s industrial orders report was bearish as well. Consequently, today’s industrial production report is expected to be bearish as well.
Japan’s balance of payments came out better than expected due to lower prices on energy carriers.
In the meantime, the demand for physical gold in Asia (including India) remains low. Strange as it may seem, the wedding season in India is nearing but it doesn’t help to boost the seasonal demand for gold.
Today’s forecast:
According to the Commodity Trading Department of , gold mat test the 1613-1615 resistance area. A failure to consolidate above 1614 will give way to 1607, 1600, and maybe 1590. If an H1 price bar closes above 1614, the price may start a bullish move up to 1617-1618, 1625.
Silver is expected to test the resistance level located at 27.75. If the test is successful, the price may rally up to 28-28.10. If an H1 price bar closes below 27.75, it will give way to 27.50, 27.25. Alternatively, a break above 28.10 may trigger a rally up to 28.25, 28.50.
