Closing blues continues for gold and silver as they have a great slide towards close. Gold and silver December future closed lower at $586.00 and $1095.00 respectively. At every successive rise new short positions are being created. Yesterday’s mid day rise was a technical bounce. The US economy is not faltering and defying all expectations and a housing slowdown, lower crude oil prices and stable interest rates should delay the slowdown of the US economy.
Gold and silver are falling and there are lot of concerns among investors whether we will see $645 in gold and $1325 in silver in 2006. In India MCX gold and silver December future there are huge long positions in gold between INR 9900 - INR 9600 and silver between INR 20,000 – INR 19000.These prices will definitely in come in 2006, however gold and silver will fall first, form a bottom and then rise. Traders and investors who do not have the margin money will exit. In India brokers and sub-brokers as well as dealers in gold and silver have resorted to bucketing for the MCX and NCDEX traders, according to our information. We are advising readers to be cautious of bucketers
As the slide in gold and silver continues, the bottom will also near soon but considering the pace of fall there still enough room for further losses. The US dollar is in a neutral zone and once the US dollar starts to depreciate, gold and silver will also start to rise. However if crude oil prices fall below $58 a barrel expect gold to touch $500.
GOLD -- DECEMBER FUTURE
Gold needs to hold $574.80 on closing basis to prevent a fall to $542.50 and $528.50. On the higher side $586.50 and $601.50 as the resistance zones.
SILVER -- DECEMBER FUTURE
Silver can fall to $1045 and $1008 if it closes below 1002. On the higher side $1151.50 is the resistance zone.
Happy Profitable Trading
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