Consumer lending declined unexpectedly in the USA last month. This info raises concerns and may suggest pessimism among American bankers. The decline will certainly press retail sales. The US trade balance report is expected to come out today. Analysts anticipate a higher deficit.
At the same time, the lending volume in China seems to have reached a new record. Probably, the previous economic stimuli start to give results.
Japanese media report about an income decline in the country due to the economic slowdown, which makes Japanese companies cut their expenses. Another decline in industrial orders confirms the overall bearish tendency.
Asian dealers report about still higher sales of secondary gold. The premium for an ounce of physical gold is around 20-40 cents.
China, the world’s biggest gold producers, managed to produce 31.3 ounces of gold in July (+7% y/y).
Today’s forecast:
According to the Commodity Trading Department of , gold may test 1728-1729. A break below 1727 will give way to 1725, 1715, 1700. Alternatively, a failure to stay below 1727 may trigger a rally up to 1750, 1775.
Silver is expected to test 33.30-33.35. If an H1 price bar closes below 33.25, it may trigger a bullish move down 33.0, 32.75. A failure to stay below 33.25 may give way to 33.60-33.65. On consolidating above 33.65, we may see the price going up to 33.75, 34.0, and even 34.25.
