Today, markets are waiting for the German Supreme Court’s decision on the legitimacy of the ESM. Most analysts expect the acknowledge toe legitimacy under certain conditions aimed at securing Germany’s parliamentary sovereignty and reducing the country’s financial risks. This decision is crucial for the eurozone as it will determine how far the ECB may go to resolve the eurozone crisis.
As for the USA, the FOMC is to hold another meeting today. Some experts are betting on further bond purchases. They also expect the Federal Reserve to expend the zero-rate policy till 2015.
Yesterday’s US trade balance report came out with a deficit increase (m/m). The export declined amid higher oil prices. Moody’s Investors Service warns the USA may see rating cuts if the US government fails to work out an efficient debt-reduction plan.
Japan’s Service PMI has come out worse than expected today.
In the meantime, South African labor unions call for a nationwide strike of miners. If this is the case, we may see platinum and gold mines ceasing production.
Today’s forecast:
According to the Commodity Trading Department of , today gold may test 1740-1741. If an H1 price bar closes above 1741, it may trigger a rally up to 1750, 1775. Alternatively, a failure to stay below 1741 will increase the probability of going down to 1730, 1725, 1715, and even 1700.
Silver is expected to test 33.80-33.95. A break above 34.0 will give way to 34.25, 34.50, maybe 34.75. A failure to stay above 34.0 may initiate a rebound to 33.50. A break below 33.50, will give way to 33.25, 33.0, 32.75.
