This week, Greek officials are planning to visit Germany and France to discuss the austerity plan, according to which Greece is obliged to save 11bn euro within the next 2 years. Greece will definitely ask for more time. But it remains to be seen whether Germany and France back the intension to extend the austerity plan till 2016. Therefore, markets can grow volatile this week in response to rumors.
The next ECB meeting on monetary policy is scheduled for September 6th. The Euro Group is planning to meet in mid September.
In the meantime, Chinese media report that the People’s Bank of China is not intended to cut the reserve rate in the short run. Monetary stimuli will probably become an alternative solution. Moreover, the Chinese authorities will be looking for the ways and means to stimulate domestic consumption.
Barack Obama warns Assad that the US troops may intervene in Syria if the government troops use chemical weapons against the rebels.
The demand for physical gold in Asia remains low. Experts say the situation is unlikely to change till September.
Today’s forecast:
According to the Commodity Trading Department of , gold is expected to test 1625. A break above 1625 will give way to 1626-1627, 1630, and maybe1650. Alternatively, a failure to stay above 1625 will probably make the price retrace back to 1620, 1615, 1605, and even 1600.
Silver is expected to test 28.6. A break below 28.6 will give way to 28.5, 28.25, 28.0. However, a more probable scenario suggests a failed test of 28.6, attended by a break above 28.75. If this is the case, the price will keep rallying up to 29.0, 29.25, and maybe 29.50.
