Tatsiana Ketrar
The latest US HPI report came out with a stronger-than-expected increase. Housing prices has been growing for 6 months in a row, thus confirming the revival of the US housing sector.
Christine Lagarde, Managing Director of the IMF, urged European leaders to consider the possibility of writing down Greek debts. This week, Mrs. Lagarde is participating in bilateral talks with them.
Meanwhile, protesters are clashing with the police in Spain as the Spanish government is planning to introduce further austerity measures in order to reduce the budget deficit. The new austerity plan is expected to be announced tomorrow.
Investors start focusing on the economic situation in the eurozone again. They want to make sure that the latest monetary steps taken by the ECB are efficient in terms of reviving the economic growth in Europe.
The Bank of Japan is expected to publish its report soon. They say the index may suggest a further decline in business confidence. If this is the case, the Bank of Japan may fall under greater pressure as politicians will urge it to expand the bond purchase program.
Central banks around the globe keep expanding their official gold reserves. In particular, Kazakhstan, South Korea and Paraguay have already increased their gold reserves by 1.4, 16 and 7.5 tons correspondingly.
China and Japan continue their island dispute.
Today’s forecast:
According to the Commodity Trading Department of , gold may test 1762-1763, while a break below 1762 will give way to 1750, maybe 1725. Alternatively a failure to stay below 1762 may result in a rally up to 1775, 1790, or even 1800.
Silver may well test 33.90. If an H1 price bar closes below 33.90, the price will get an opportunity to test 33.75 while a break below 33.75 will only increase the probability of going down to 33.50, 33.25, maybe 33.0. Alternatively, if the price fails to stay below33.90, we may see it rallying up to 34.25, 34.50, and maybe 34.75.
Tatsiana Ketrar
