Yesterday’s FOMC meeting minutes gave to understand that more FOMC members are ready to vote for further economic stimulation. Therefore, the Federal Reserve seems to be determined to act if there are no signs of economic recovery in the near future. The latest macroeconomic stats may turn out to be rather weak. The budgetary committee of the US Congress published its budget forecast yesterday. The new forecast promises a $1.1 trillion deficit. If all the planned spending cuts and tax hikes take effect in 2013, the US economy is said to decline 0.5%. Altogether, these factors are seen by speculators as extra factors forcing the FRS to take some efficient steps. The decision will be made in September.
German and French officials are meeting today to discuss the Greek issue. They are expected to agree on the details of further financial support. The eurozone’s manufacturing production index has strengthened for the first time in several months. However, it is still below 50.0.
Today’s forecast:
According to the Commodity Trading Department of , gold is expected to test 1675, on consolidating above it, the price may touch 1690. A failure to stay above 1675 will trigger a bearish move down to 1650-1655. A break below 1654 will give way to 1635-1638.
Silver is expected to test 30.5. On breaking above 30.75, it may hit 31.0. Alternatively, a failure to stay above 30.50 will trigger a bearish move down to 30.25, 30.0, and maybe 29.75.
