Yesterday’s US consumer confidence report showed a sharp decline (m/m). Therefore, it may affect retail sales and consumer spending. Moreover, FRS officials disproved the expectations of QE3. The uncertainty may force investors into going risk-averse till Friday.
Spanish and Italian bond yields dropped yesterday. The eurozone economy is still in recession. Howe ver, the ECB’s stimuli now seem to have finally started paying off. On the other hand, the absence of a clear, solid and efficient plan may eventually disappoint investors.
China’s industrial production report is scheduled for Saturday. Experts anticipate the lowest performance in 9 months. This may suggest a further economic slowdown.
There are no changes in the market of physical gold. Singaporean dealers report that the gold premium has declined form 50-70 cents down to 30-50 cents per ounce.
Today’s forecast:
According to the Commodity Trading Department of , gold is expected to break out of the 1675-1667 price range. On breaking and consolidating below the bottom of the range (1667) the price may test 1660, 1655. A failure to stay below 1667 will give way to 1674-1675. If an H1 price bar closes above 1675, we may see the price rallying up to 1690 and even 1700.
Silver is expected to test 30.90. On breaking and consolidating below 30.80, we expect the price to test 30.5, 30.25. Alternatively, a failure to stay below 30.80 may trigger a bullish move up to 31.0-31.05 while a break above 31.05 will give way to 31.25 and even 31.5.
