Forecast for the week 29 June – 3 July:
This week we shall expect development of an ascending tendency. The past weekend, Greece was not able to settle with its creditors which puts risks in Euro zone to the very high level. In periods of instability, precious metal is of a high demand. Secondly, the past week, yield of US 10 years' treasuries grew by 19 p. to the level 2.47%. It indicates increased expectations of inflation and is positive for Gold. So, this week we should open Buy of decline of quotations to the area 1172/1162 and take profit on the point 1190.
XPT/USD and XPD/USD:
Bulls are expected to dominate this week. Firstly, US labor market demonstrate ascending yet moderate trend which points at a sustainable demand and is positive for both metals. Secondly, strong reports on manufacturing and non-manufacturing PMI of leading European states also proves recovery of the European economics. It will contribute to growth of quotations of industrial metals.
Copper was the first to respond to this and by the end of the week it added 2.37%. Now it is turn of Platinum and Palladium to reach higher goals.
So, in the middle of the week we should open Buy trades on XPT/USD using decline of quotations to the area 1077/1060 and take profit on the point 1100 and Buy on XPD/USD using decline of quotations to the area 673/663 and take profit on the point 699.
This week bears are expected to rule. The past week, investors expected a positive outcome of a Greek crisis but parties did not manage to come to an accommodation. Long positions can be closed and sales may go on. Investors will leave risky assets (stock market) and switch to safe assets (gold and Japanese Yen). We cannot come by dynamics of a bond market. The last week , 2 years' treasuries grew up to 0.715%. It means that investors still expect that this Fall FRS will raise interest rate. This is a negative factor for the stock market. So, this week we should open Sellpositions on growth of quotations to the area 2105/2115 and take profit on the point 2083.