Alex Bobrov
Yesterday’s US trade balance report showed a deficit. However, the deficit turned out to be less considerable than expected. The Federal Reserve support the expectations of major economic stimulation. Some of the central bankers say the bond purchase program will remain around $85bn a month even after Operation Twist is over.
Meanwhile, yesterday’s eurozone economic sentiment index showed an unexpected increase. The latest Spanish bond auction resulted in lower yields. Investors are now focused on the eurozone’s efforts to consolidate the banking union. The panic caused by the continued eurozone crisis resulted in a major withdrawal of capital from Greek, Spanish, Portuguese and Irish banks. Therefore, only the ECB’s bailout helped most of these banks to stay liquid and avoid bankruptcy.
The Bank of Japan left the key interest rate unchanged but expanded the bond purchase program by $127bn. Obviously, the Japanese Yen responded with a decline.
Unexpected news came from South Africa yesterday. The strikers agreed to resume the production of platinum.
Bank of America expects gold to hit $2400/oz by late 2014. In Q2 2013, an ounce of gold is expected to cost around $2000/oz.
Today’s forecast:
According to the Commodity Trading Department of , gold may test 1780. A break above 1780 will give way to 1786-1791, maybe 1800. Alternatively, a failure to stay above 1780 may trigger a bearish move down to 1770, while a break below 1769 will give way to 1760, 1750, maybe 1725.
Silver may test 34.95-35.0. A break below 35.0 may result in the price rallying up to 35.25, 35.50, or even 35.75. Alternatively, a failure to stay above35.0 will give way to 34.70-34.75, while a break below 34.70 may result in a further bearish move down to 34.5, 34.25 and 34.0.
Alex Bobrov
