The head of Bundesbank seems to be the only central banker confronting the ECB’s bund purchase program. Yesterday Mario Draghi said that the ECB would be focused on buying 3-year bonds in order to reduce the debt cost.
German, Italian, French and other European leaders are having talks to come to an agreement before the ECB meeting scheduled for September 6th. Economic stats still suggest recession.
Japan has published its report on the average household income. The report came out much worse than expected. If the Japanese authorities don’t respond to the decline, we may see a retail sales decline in the near future. Along with lower export, this may trigger the recession scenario.
The Asian market of physical gold hasn’t seen any major changes so far. The only change is an increase in the sales of secondary gold.
Today’s forecast:
According to the Commodity Trading Department of , gold may test 1689-1690 on consolidating below 1693. A break below 1689 will give way to 1675, 1660. Alternatively, a failure to stay below 1689, will trigger a rally up to 1715, 1725.
Silver is expected to test31.75 on consolidating below 32.0. A break below 31.75 will give way to 31.50, 31.25. a failure to stay below 31.75 may result in the price going up to 32.25, or even 32.50.
