-- Posted Tuesday, 22 November 2011 | | Disqus
Executive Summary
· Technical correction seems to be over in gold, silver, copper and crude oil
· Commodities will fall if and only if global stock markets fall further
Global stock markets fell on fresh worries about the U.S debt pile and ongoing concerns about Europe’s troubles worked to depress sentiment. All of the current news is bullish for gold and silver prices. Earlier this year the prime reason for gold to zoom was the delay in passing of the US budget. The current deadlock in the USA and other factors globally makes me believe that gold is poised for another big rally. A special debt-reduction committee in the U.S. Congress failed to reach agreement, extending partisan gridlock into the 2012 election year and setting the stage for $1.2 trillion in automatic spending cuts. Spending cuts will slowdown US retail consumption. But the trend of the US economy is that government sector spending will be negligent for US growth.
Base metals and energies to track stock markets. Physical demand of gold in India will rise. A weaker rupee against the US dollar has prevented gold prices from falling in India.
COMEX TECHNICAL VIEW
COMEX GOLD DECEMBER
Bullish over $1676 with $1707 -$1741-$1775 as price target
Bearish below $1660 with $1649-$1627 as price target
Neutral Zone between $1660-$1676
Break point: $1707-$1663.60
- Oversold conditions exist which suggest that gold can rise to $1726 and $1775 as long as it trades over the $1649-$1663 zone.
- There will be buyers on dips as long as gold trades over $1649
- Trading call: Buy over $1686 for $1707-$1726 or buy around $1612 stop loss below $1576
MCX GOLD DECEMBER
Bullish over 28360 with 28820-29175 as price target
Bearish below 28200 with 280505-27775 as price target
Neutral Zone: 28200-28360
BREAK POINT: - 28475-28760
- Gold needs to trade over 28600 for the whole day to target 28800-29200. On the lower side 28300 is the key support. There will be a technical break down below 28300
- Momentum call: Buy around 28105 stop loss below 27880 for tomorrow or buy over 28600 for 28750-28900
- Gold 100gm mini call: buy around 28300 stop loss below 27700
(all mcx prices are in Indian rupees)
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
COMEX GOLD – $15-$17
COMEX SILVER: $25-$30
COMEX COPPER: $3
NYMEX CRUDE OIL: $0.60
SPOT SILVER: $0.25
SPOT GOLD: $15-$17
THE TIME GIVEN IN THE REPORT IS THE TIME OF COMPLETION OF REPORT
-- Posted Tuesday, 22 November 2011 | Digg This Article
| Source: GoldSeek.com
