-- Posted Thursday, 1 December 2011 | | Disqus
Yesterday in our reports I had said that one needs to be prepared for big moves in silver and copper and I was right as they both have broken the consolidation phase only to move into another big bull wave. The Chinese bank reserve requirement cut by 0.50% was the key. This was aided by six central banks led by the Federal Reserve which made it cheaper for banks to borrow dollars in emergencies in a global effort to ease Europe’s sovereign-debt crisis. Cheap money is not the solution to global economic woes and is another step towards moving into a long term deep recession which will be nearly impossible to revive. Federal Reserve and other central banks move will be disastrous in the long term. Gold will only rise and act as a currency.
Just remember that supply the world with cheap and excess money will only result in greater and unnecessary risk taking and will result in unwarranted speculated price rises in the medium term which will only hurt long term growth fundamentals. Part of the cheap money will move towards speculation in essentials such as grains and other eatables and a rise in food price inflation. The Indian people are grappling with very high food price rises over the past few years. The rise in global prices of eatables will only act as an excuse by the current UPA alliance for the Indian food price hike. Indian food price inflation will come down in the coming months as winter is a period where prices of vegetables, pulses etc fall/stabilize. In summer it will be back to square one as prices of vegetables and other eatables will zoom. In the last decade Indian milk prices used to fall every winter month but over the past few years they have even started to rise. This is not just an Indian story, it is a global story and politicians are only words and no actions. The best way to counter this is whenever one has an opportunity to vote, come and vote in large numbers and make sure that the ruling alliance party losses. The elected leader and his party should always fear that if they do not perform they need to go. (Please note that I am in in favor of “democratic communism” as opposed to the “capitalist democracy” that the most of the countries are following. The view expressed are my own and do not reflect the views of the concern).
COMEX TECHNICAL VIEW
COMEX GOLD FEBRUARY 2012
Bullish over $1741 with $1775 -$1804 as price target
Bearish below $1731 with $1711-$1690 as price target
Neutral Zone between $1731-$1741
Break point: $1754.30
· Gold can rise to $1775-$1804 as long as it trades over $1740
· There will be sellers only below $1740
· Trading call: Buy over $1754 for $1764-$1775-$1804 or sell below $1740 for $1728-$1711
MCX GOLD FEBRUARY 2012: Gold targets Rs. 30827 and Rs.31813 in December as long as it long as it trades over Rs.28469. Only a daily close below Rs.28469 for three consecutive days will result in a short term bearish phase
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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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 Thursday, 1 December 2011 | Digg This Article
| Source: GoldSeek.com
