The Federal Reserve claims that its experts are looking for new ways and means of economic stimulation. Analysts are now trying to decode the message. One of the possible ways is concessional lending for those financial institutions that will be lending to the real sector of the US economy.
EU leaders are developing the plan of enforcing the ECB’s supervising role in the eurozone’s financial sector. Spain is the focus. The euro keeps depreciating. Today, markets are looking forward to economic reports from Germany.
Yesterday, Japan surprised everyone by unexpectedly showing a external trade surplus in June. Despite lower export, lower oil prices helped Japan to close the month with a surplus. However, Japan still showed a record-high deficit in the first half of 2012 (2.9 trillion yen).
The IMF reports about major economic risks in China and urges the Chinese to stimulate domestic consumption. In response to the economic slowdown, China expands public spending.
The market of physical gold keeps seeing low demand. It will remain low at least till late August (the wedding season in india).
Today’s forecast.
According to the Commodity Trading Department of , gold will probably be testing 1585-1588. If an H1 price bar closes above 1588, the price will get a chance to rally up to 1592, 1596, and maybe even 1600. Alternatively, a failure to consolidate above 1585, followed by a break below 1579 will trigger a bearish move down to 1575, 1570.
Silver stays within the 27.0-26.75 range. A break above 27.10 will trigger a rally up to 27.25-27.30. At the same time, a break above 27.35 will give way to 27.50-27.75. Alternatively, a failure to stay above 27.10, followed by a break below 26.85, will give way to 26.75, maybe 26.50.
