The US housing sector showed some strength yesterday. Construction orders, new home sales and existing home sales – all these reports came out bullish. However, there was a decline in mortgage claims. Today, investors and speculators are waiting for the US unemployment report.
At the same time, Germany’s PMI is bullish, which may suggest higher demand and commodity prices. The eurozone’s Services PMI report is to come out today. Spain is to hold another bond auction today.
Japan’s trade balance keeps declining. The deficit increased (m/m) and came out worse than expected. The country’s export shrank by 5.8% in September (y/y).
China’s PMI is below 50 again, even though the index has strengthened a bit. Industrial production keeps declining as well. Investors expect the People’s Bank of China to take certain steps to stimulate the national economy.
The demand for physical gold remains low. However, there is a certain revival in the demand for gold in India in advance of the wedding season. However, the demand is still balanced by secondary gold. More experts doubt that the Federal Reserve’s QE3 will support gold prices. It will depend on the impact of QE3 on US bond yields.
Today’s forecast:
According to the Commodity Trading Department of , gold may test 1770. A break above 1770 will give way to 1775, 1780, while a break above 1780 may push the price up to 1786-1791, or even 1800. Alternatively, a failure to stay above 1770 may trigger a bearish move down to 1760, 1750, maybe 1725.
Silver is expected to test 34.50-34.60. A break above 34.60 will probably trigger a rally up to 34.75, 35.0, may be 35.25. Alternatively, a failure to stay above34.60, may well give way to 34.5, 34.25 or even 34.0.
