EXPECTED TRADING RANGE |
GOLD DECEMBER -- $709.70 -- $732.00 | SILVER DEC -- $1252.0 - $1311.00 |
COPPER AND CRUDE OIL -- EXPECTED TRADING RANGE |
COPPER DEC -- $322.40.00 - $338.70 | NYMEX CRUDE OIL - $75.20 - $80.60 |
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GOLD DECEMBER TECHNICAL LEVELS |
SUPPORT | RESISTANCE |
S1 | S2 | S3 | S4 | R1 | R2 | R3 | R4 |
$695.20 | $701.20 | $709.10 | $719.10 | $722.20 | $726.60 | $737.00 | $745.50 |
GENERAL MARKET CONDITIONS |
Anything that is scarce commands a higher value than those which are available in excess. This is one of the prime reason for gold’s rise. Central banks are pumping in billions of dollars in money market to ensure a stock market rise. Paper is available freely. Gold is not. Gold has to rise. It seems markets have started discounting chances of a recession which is another reason for gold’s rise. Gold will also get support from continues US dollar depreciation and higher crude oil prices. The US dollar depreciation is here to stay for the rest f the year with a slight possibility of euro/usd testing 1.45 before the close of the year. Crude oil prices will cool down as US inventories rise over the next few weeks. Hopefully hard assets will get their due soon. |
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Gold is also being supported by short covering. Traders are going short at higher levels. When prices rise further, they are converting their shorts in long which further adds to the price rise. This is a process which is being done. As long as this continues gold will only rise. Indian physical traders are buying gold on dips but in small quantities. |
Among the base metals apart from steel, lead should rise faster than the rest on extremely low global inventories. Unless china shows signs of cooling, value based buying at lower levels will prevent them to fall. A weaker dollar is positive for base metals as carry traders lift prices. Volatility in base metals will rise for the rest of the year as traders remain on the edge looking for signs of a global slowdown. |
Technically gold and silver are bullish and have room for gains. There could be profit taking at higher levels which will add to the volatility. |
MCX -- ZINC SEPTEMBER FUTURE (PRICES IN INDIAN RUPEE'S) |
SUPPORT | RESISTANCE |
S1 | S2 | S3 | S4 | R1 | R2 | R3 | R4 |
107.90 | 109.20 | 111.10 | 114.80 | 118.30 | 120.40 | 122.00 | 125.60 |
MCX -- ZINC SEPTEMBER FUTURE (PRICES IN INDIAN RUPEE'S) |
Zinc may have bottomed out in the short term, unless there is a sharp rise in LME inventories. Technically needs to break 120 to be in bullish zone. |
GOLD -- DECEMBER FUTURE |
Gold targets $726.60 and $737 as long as $709.10 holds. Only a consolidated fall below $709 will result in $700 and $687. |
SILVER -- DECEMBER FUTURE |
Silver targets $1307 and $1345 as long as $1248 holds. Consolidated fall below $1248 will result in $1234 and $1212. In the short term as long as silver holds $1209, downside is limited. |
COPPER -- DECEMBER |
Copper floating near the 100 day MA of $339.50 and needs to break the same for $343.60 and $350.50. On the lower side a short term bottom has been formed at $322. |
NYMEX CRUDE OIL -- FUTURE |
Crude needs to break $77-$80 jinx for gains to $86. On the lower side as long as $72.66 holds downside is limited. |
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Disclaimer : Any opinions as to the commentary, market information, and future direction of |
prices of specific currencies, precious metals, base metals, or equity indices reflect the views |
of the individual analyst, In no event shall Insignia Consultants or its employees have any liability |
for any losses incurred in connection with any decision made, action or inaction taken by any |
party in reliance upon the information provided in this material; or in any delays, inaccuracies, |
errors in, or omissions of Information. |
