-- Posted Wednesday, 7 September 2011 | | Disqus
- Swiss National Bank Pledges Unlimited Currency Purchases
- Double top formation in spot silver around $43.40 suggest that silver can fall to $40.76 and $38.25 if it fails to break $43.40 this week.
- Spot gold is in a neutral zone to bullish zone and needs to trade over $1850 to be in bullish zone.
- Physical gold demand in India and China should rise if and when gold prices fall below $1850
- Key support for spot gold $1850 and spot silver $41.48
- Base metals and energies to track stock markets
Effect of Swiss central bank on capping euro/chf rate to 1.20
The Swiss National Bank said it would no longer tolerate the shared currency trading below 1.20 Swiss francs. In a statement, the SNB said the "current massive overvaluation of the Swiss franc poses an acute threat to the Swiss economy and carries the risk of a deflationary development." The SNB said it will "enforce this minimum rate with the utmost determination and is prepared to buy foreign currency in unlimited quantities."
Our view: The SNB indicated it would buy an unlimited amount of euros regardless of the risk to maintain that value. The Swiss franc is the only safe haven currency and gold and silver will benefit from this move. This will add one more reason to invest in gold or remain invested in gold. But gold and silver can fall initially after the Swiss bank move on Franc and then rise. My only concern is whether other central banks could follow the Swiss central bank and also put a limit to their currency gains. The Bank of Japan has been following the Swiss bank and could also move to limit yen gains against the US dollar. The Bank of Japan has a history of following Swiss central bank moves.
COMEX | LAST | MA 9 | MA 21 | MA 50 | MACD | RSI |
GOLD | $1,874.00 | $1,829.66 | $1,809.99 | $1,680.61 | 1.0264 | 1.6083 |
SILVER | $4,195.00 | $4,152.88 | $4,076.80 | $3,927.17 | 1.0171 | 3.6001 |
COPPER | $403.95 | $409.60 | $403.16 | $421.86 | 0.9938 | 0.3467 |
CRUDE | $86.55 | $87.07 | $85.64 | $91.27 | 0.9888 | 0.0743 |
GAS | $3.94 | $3.94 | $3.96 | $4.15 | 0.9863 | 0.0034 |
PLATINUM | $1,851.50 | $1,847.89 | $1,835.19 | $1,791.19 | 1.0100 | 1.5889 |
PALLADIUM | $747.45 | $765.21 | $755.85 | $773.64 | 0.9986 | 0.6415 |
HEATING OIL | $3.02 | $3.03 | $2.96 | $3.01 | 1.0038 | 0.0026 |
Volatility will remain high, one should remain on the sidelines. Use any five percent dip in gold and silver to invest for the long term. Global fundamental are still supportive of a long term rise.
COMEX TECHNICAL VIEW
COMEX SILVER DECEMBER
Bullish over $4227 with $4350-$4467 and $4669 as price target
Bearish below $4189 with $4064-$3980 and $3817 as price target
Neutral Zone between: $4189-$4127
Break point: $4164
- Double top formation around $4350 suggest that silver can fall to $4064 and $3944 if it fails to break and trade over $4350 by Friday
- Sellers will be there below $4164
- Trading call: Sell below $4164 for $4110-$4102 OR buy over $4225 for $4250-$4270
MCX SILVER DECEMBER
Bullish over 65500 with 66705-68050 and 69800 as price target
Bearish below 64700 with 64000-63300 and 60900 as price target
Neutral Zone: 64700-65500
BREAK POINT: 64400 and 65700
- 64000 is the key support and silver needs to trade over 64000 else it will fall to 63000 and 61876
- There will be buyers only on a break of 64800
- Momentum call: Buy over 64800 for 65500-66600 OR sell below 64400 for 64000-63000
- Limit Order: Buy silver around 62773 till 60000 price target 73941-77793 stop loss below 54000 (2 months time)
Disclaimer: Any opinions as to the commentary, market information, and future direction of prices of specific currencies, metals and commodities 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. Nothing in this article is, or should be construed as, investment advice. Prepared By Chintan Karnani. Website www.insigniaconsultants.in
Happy profitable Trading
PLEASE NOTE: HOLDS MEANS HOLDS ON DAILY CLOSING BASIS
PLEASE USE APPROPRIATE STOP LOSSES ON INTRA DAY TRADES TO LIMIT LOSSES.
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APPROPRIATE STOP LOSSES PER LOT IN US DOLLARS ON THE TRADING CALLS GIVEN IN THIS REPORT
COMEX GOLD – $15-$17
COMEX SILVER: $25-$30
COMEX COPPER: $3
NYMEX CRUDE OIL: $0.60
MCX SILVER: INR 15000-16000 PER LOT
-- Posted Wednesday, 7 September 2011 | Digg This Article
| Source: GoldSeek.com
