-- Posted Tuesday, 25 October 2011 | | Disqus
HAPPY KALI PUJA TO ALL
Executive Summary
· Gold is needs to trade over $1661 for further gains
· Silver is bullish over $3080
· Crude oil looks headed for $103.20 on succession uncertainty in Saudi Arabia
Base metals and energies zoomed yesterday on expectations that China will not have a hard landing. Short covering and a technical break out also added to the gains. Gold and silver are firm on very high Indian demand and should rise further. A weaker US dollar and uncertainty over the eurozone will only add to the gains in bullion prices. Market sentiment in bullion is very bullish and most perceive that bullion has formed a medium term bottom. Investment demand of bullion is on the rise in Asia and is expected to rise further in the next few weeks.
European leaders are nearing a strategy to counter the euro zone's sovereign debt crisis but it has some apparent flaws and may fall apart. Under an emerging deal likely to be struck on Wednesday, Greece's debt will be reduced, European banks will be recapitalized, the euro zone's rescue fund will scaled up to provide partial insurance in sovereign bond markets, and Italy will be pressured into getting serious about economic reform. In our view all the measures will only provide short term stability in the Eurozone and long term irreparable damage to the euro currency. Implementation on austerity measures in the short term is easier said than done in the long term. Euro-US dollar can rise to 1.4450-1.5200 in the next few months but ultimately it will fall to 1.2750 in the next six months to eight months. Debasement of currency values will result in gold showing tendencies of a currency. Central banks have huge euro reserves and they are diversifying away from euro reserves at a very rapid pace. Gold, silver and other precious metals are finding a way into the central bank chest. At the beginning of 2000 central banks were increasing euro reserves and reducing US dollar reserves. The central bank dilemma is that both the US dollar and euro are unviable and insecure in the long term. Gold should act as a currency among central bankers. (Please note that corrections of twenty percent will be a part and parcel of a long term bull rally and that I will not be surprised if gold falls to $1200 in 2012. Rather I will be happy to invest)
Crude oil has risen on uncertainty over the succession over the new price of Saudi Arabia. Saudi Arabia has been the key ally of USA after World War II. There is no certainty as how much pro USA will be the new prince. Lots of questions need to be answered on the new prince of Saudi Arabia. The sooner the new prince is announced the better for crude oil price stability. Crude oil prices should rise further to $103 in short term unless the new prince is not announced and take over.
Today and tomorrow are the Diwali days. Laxmi should come to us and not leave our wallets. Do not trade if you are not sure.
Technically gold, silver, copper and crude oil are bullish. Fall will be there if and when there are not stock sell off and/or the US dollar gains significantly.
COMEX TECHNICAL VIEW
COMEX GOLD DECEMBER
Bullish over $1639 with $1661-$1686-$1711 as price target
Bearish below $1628 with $$1616-$1603 and $1585 as price target
Neutral Zone between $1628-$1639
Break point: $1658
- Gold targets $1696-$1711a long as it trades over $1639
- There will be buyers on dips as long as gold trades over $1630
- Trading call: Buy over $1660 for $1676-$1711 or sell below $1639 for $1629-$1600
COMEX SILVER DECEMBER
Bullish over $3130 with $3256-$3311-$3357 as price target
Bearish below $3085 with $3035-$2986 and $2840 as price target
Neutral Zone between: $3085-$3185
Break point: $3160
- Silver targets $3250-$3350 as long as it trades over $3100
- There will be buyers on dips as long as it trades over $3100
- Trading call: Buy around $3160 for $3200-$3260-$3350 or sell below $3115 for $3085-$3030-$2900 stop loss over $3035
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
NOTES TO THE ABOVE REPORT
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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You can also mail your queries at chintan@insigniaindia.com
APPROPRIATE STOP LOSSES PER LOT IN US DOLLARS ON THE TRADING CALLS GIVEN IN THIS REPORT
THE TIME GIVEN IN THE REPORT IS THE TIME OF COMPLETION OF REPORT
COMEX GOLD – $15-$17
COMEX SILVER: $25-$30
COMEX COPPER: $3
NYMEX CRUDE OIL: $0.60
SPOT SILVER: $0.25
SPOT GOLD: $15-$17
-- Posted Tuesday, 25 October 2011 | Digg This Article
| Source: GoldSeek.com
