The Fed Reserve has reported that it is going to publish forecasts for its interest rate decisions in order to increase transparency. The first forecast will be published after the meeting scheduled for Jan 24th-25th.
The scandal around the bankruptcy of MF Global seems to be escalating. As it turned out, 4 days before announcing its bankruptcy, MF Global sold most of its assets to Goldman Sachs. The broker still owes its clients about $900M.
Iran has recently made a military threat against the USA as the US Navy has decided to send its aircraft carrier to the Persian Gulf.
Asia’s gold bullion manufacturers start resuming their production after the New Year holidays. The physical demand for gold remains low. Dealers expect an increase right before Chinese New Year. The premium for physical gold gained a little, thus reaching $1.3-2 per ounce in Singapore.
Most investors expect the EU economy to be further stimulated.
In the meantime, India’s central bank is expected to ease its monetary policy. The interest rate is said to be lowered by 0.25% down to 8.25%.
Venezuela is not going to repatriate all the gold reserves stared abroad, thus living 15 tons for international financial transactions. The country’s gold reserves are equal to 365 tons.
Against this background, yesterday gold rallied, thus showing 0.8 correlations with the common European currency.
Forecast: According to the Department of Commodity Trading of , today gold may start retracing. A test of 1615 is still probable. To do that, the price will have to consolidate above 1601. Otherwise, if gold falls below 1597, it will get a chance to go further down to 1590, 1567-1569.
Silver has been retracing down to 28.75 since early morning. A break below the level will give way to 27.9, 27.4. In order to resume the rally, silver will need to overcome the 29.50-29.57 area.
