Friday’s US unemployment stats came out controversial. On the one hand, the rate of unemployment declined. On the other hand, the rate of employment showed a considerable slowdown. Most investors expect FOMC members to show their determination to act during the forthcoming meeting scheduled for this week. Some experts anticipate an unlimited bond purchase program while others limit it to $50 bn.
In the meantime, the Prime Minister of Greece is having talks with coalition leaders in order to ask them to back the € 11.5bn austerity plan. The spending cuts must be implemented in order to obtain another tranche from the EU. This week, the Euro Group is planning to hold another meeting.
Japan’s GDP report showed a less-than-expected increase. The balance of payments also showed a slight surplus. China published a range of economic reports during the weekend. Higher retail sales supported consumer price growth. The industrial production report came out worse than expected – the production growth slowed down. Chinese export increased less than expected as well. Some experts say that the Chinese government has got enough arguments to start stimulating the national economy.
Today’s forecast:
According to the Commodity Trading Department of , gold is expected to test 1736-1737. A break below 1736 will give way to 1725, 1715, maybe 1700. A failure to stay below 1736 will increase the probability of rallying up to 1750, 1775.
Silver is expected to test 33.75-33.65. If an H1 price bar closes below 33.60, it will trigger a bearish move down to 33.50, 33.25, maybe 33.0. A failure to stay below 33.60 will give way to 34.0. On consolidating above 34.0, we may see the price moving up to 34.25, 34.50.
