Tatsiana Ketrar
Yesterday’s US new home sales report came out with a decline, thereby failing to come up to analysts’ expectations mainly because housing prices hit the highest level in 5 years.
Today, we expect new reports on the US GDP, unemployment, and durable goods orders. The latter two reports are expected to show a decline.
In the meantime, European leaders are trying to agree on the ways and means of restructuring risky European banks. It turns out that the agreement reached 3 months ago is interpreted in multiple ways.
Investors are worried as Spanish bond yield start growing again. Today, the Spanish government is expected to publish the extra austerity plan.
The Greek debt restructuring issue remains open as well. The EU/ECB/IMF trinity of lenders cannot agree on the details. Obviously, Greece will need either more money or more time to solve the problem. Meanwhile, protesters keep clashing with the police in Spain and Greece.
China’s industrial companies have seen their incomes going down for 5 months in a row. Nevertheless, the stock market responded with growth as investors expect the authorities to implement further economic stimuli.
A new wave of protests broke out in South Africa, thereby suspending 39% of the country’s gold production.
Asian dealers report that there are no changes in the demand for gold.
Today’s forecast:
According to the Commodity Trading Department of , gold will probably be testing 1753-1754, while a break below 1753 will give way to , 1725, or even 1700. Alternatively, if the price fails to stay below 1753, we may see it rallying up to 1765, 1775, and maybe 1790.
Silver may test 33.95-34.0. If an H1 price bar closes below 33.90, it will give the price a chance to go down to 33.75, while a break below 33.75 will give way to 33.50, 33.25, or even 33.0. a failure to stay below 33.90, will increase the probability of going up to 34.25, 34.50, or maybe 34.75.
Tatsiana Ketrar
