Analysts expect the Federal Reserve to spend $600bn on bond purchases within the framework of QE3. Some of them say the 3rd round of quantitative easing will last until the US rate of unemployment declines down to 7%.
The eurozone’s trade balance report showed a surplus yesterday. However, the report failed to come up to analysts’ expectations.
Meanwhile, Spain is about to hold another bond auction today. Some experts say the forthcoming auction may force the Spanish government to ask the EU for financial support.
China’s housing market is showing weakness while the Bank of Japan continues its 2-day meeting to discuss further monetary policies. Some experts expect the BOJ to start another bond purchase program in order to stimulate the national economy.
Today’s forecast:
According to the Commodity Trading Department of , gold may test 1770-1775 on consolidating above 1760. A break above 1775 will give way to 1786-1791, and maybe even 1800. Alternatively, a failure to stay above 1760 may trigger a bearish move down to 1750, maybe 1725.
Silver is expected to test 34.4-34.50. A break above 34.50 will give way to 34.75, maybe 35.0. Alternatively a break below 35.0 will give way to 35.25, 35.50 while a failure to stay above 34.50 may trigger a bearish move down to 33.75, 33.50 and even33.0.
