In advance of this week’s meeting in Berlin, Germany urges Greece to stick to the agreed budget cuts. So far, the Greek authorities have failed to implement the required austerity steps, which may suggest the necessity of further financial support.
The eurozone debt crisis seems to have supported the European demand for gold in Q2 2012. The demand for bullions and coins increased by 77.6 tons during the mentioned period.
The continued protests seen in South African platinum mines continue downgrading the forecast for this year’s production of platinum, simultaneously supporting the price.
According to the World Gold Council (WGC), central banks will increase their demand for gold up to 500 tons in the 2nd half of the year. During the 1st half of 2012, they purchased 254.2 tons of gold.
The political instability in the Middle East supports the price of gold as well. Moreover, speculators expect the People’s Bank of China and the Federal Reserve to take some major steps to revive the economic growth in their countries, which seems to be another bullish factor for gold.
Today’s forecast:
According to the Commodity Trading Department of , gold is expected to test the support area around 1617-1618. If an H1 price bar closes below 1617, the price will trigger a bearish move down to 1605, 1600 and maybe even 1595. Alternatively, a failure to stay below 1617 will increase the probability of going up to 1626-1627, 1630 and maybe 1650.
Silver is expected to test 28.0. A break below the level will give way to 27.75, 27.50. Otherwise, the price may end up testing 28.25. A break above 28.25, will give way to 28.50, 28.75.
