During Friday’s meeting, the Euro Group failed to agree on the terms of the eurozone banking integration. France, Spain and Italy are determined to implement the plan as soon as possible while Germany and some other eurozone members need more time to study the issue before making a decision. Today’s eurozone trade balance report is expected to show a surplus.
Meanwhile, the island dispute between China and Japan is escalating. Japanese car manufacturers have to curtail production and close offices in China. Obviously, this will result in a major sales decline.
Asian dealers report about higher sales of secondary gold seen last week. At the same time, Indian jewelers keep purchasing more gold. However, the premium is still low – $0.20-0.40 per ounce.
Today’s forecast:
According to the Commodity Trading Department of , gold may test 1785-1790 on consolidating above 1780. Alternatively, a failure to stay above 1780 may trigger a bearish move down to 1770-1775, while a break below 1770 will give way to 1760, 1750. The bullish scenario looks more probable at this point.
Silver is expected to test 35.0. A break above 35.0 will give way to 35.25, 35.50, maybe 35.75. Alternatively, a failure to stay above 35.0 will give way to 34.65-34.75, while a break below 34.65 may result in a bearish move down to 34.50, 34.0.
