Yesterday’s US jobless claims report showed an increase, thereby exceeding the forecast. These data confirm that the US economic recovery is unstable. American households’ personal income (increased against last month’s figures as well. The markets are focused on Ben Bernanke’s Jackson Hole speech.
Japan’s manufacturing production report came out below 50 again this morning. The household spending report showed an increase against last month’s report. Industrial production and residential construction are in decline amid lower consumer prices. The Japanese government is planning to implement spending cuts in order to avoid a major budget deficit.
Meanwhile, European speculators are waiting for Spain to ask international lenders for external financial support. The Prime Minister of Spain says the Spanish government postpones the decision till all the details and conditions are specified. Obviously, there are intensive talks going on backstage. Therefore, the final decision will probably be made in advance or after the forthcoming ECB meeting scheduled for September 6th 2012. The ECB has downgraded its forecast for risky eurozone economies.
The Indian economy has shown better-than-expected economic growth. Probably, the central bank’s interest rate cuts have been efficient so far.
Yesterday’s UN report says that Iran has doubled its uranium enrichment capacity in underground facilities. Therefore, we can see the anti-Iran block getting a weighty argument excuse to start a military campaign against Iran, thereby increasing political risks.
Today’s forecast:
According to the Commodity Trading Department of , gold is expected to test 1654-1655. A break below 1654 will give way to 1650, 1640. Alternatively, a failure to stay below 1654 may trigger a rally up to 1661 and even 1674-1675. A break above 1675 will give way to1690, maybe 1700.
Silver is expected to test 30.45-30.50. A failure to consolidate above 30.50 may force the price to go down to 30.25, 30.0, 29.75. Alternatively, a break above 30.50 will give way to 30.75, 31.0 and even 31.25.
