-- Posted Thursday, 2 August 2012 | | Disqus
COMEX DAILY REPORT
Executive Summary
· European central bank meeting and bank of England meeting ends by 6:30 pm IST.
· Federal Reserve does not signal any monetary easing measures. But it could do it in future.
FEDERAL RESERVE MEETING
The Federal Reserve stopped short of offering new monetary stimulus even as it signaled more strongly that further bond buying could be in store to help a U.S. economic recovery that it said had lost momentum this year. Fed officials described the economy as having "decelerated somewhat," a change of tone from its previous assessment in June when it said the economy had been "expanding moderately." The Fed's policymakers also reiterated their disappointment with the slow pace of progress in bringing down the nation's 8.2 percent jobless rate.
Our View: Traders will be looking forward to the July US non farm payrolls which if comes in below expectations will result in another expectation of monetary easing in September and another new wave of rise in bullion, base metals, energies and a sell off in the US dollar. The Federal Reserve meeting will announce monetary easing measures in September or October on political compulsions just before the US presidential elections. The Fed's next policy-setting meeting is scheduled for Sept. 12-13.
I still do not understand why just increasing lending is a way to get over all the fundamental ills of the economy. The debt ridden US consumer has understood the importance of savings. If the Federal Reserve takes measures to increase lending by banks to US consumers, the US consumer will retire old debt from the current loans and try to become debt free and increase savings. The whole concept of increasing lending to boost spending will boomerang over the coming years. Then what will happen, a total banking system failure and nothing else which will have global repercussions in the form of sustained very high stagflation years and more and more protectionism. The US style of capitalistic economy is coming to an end in the USA itself.
The next two days
The Bank of England meeting and the European central bank meetings are the key today. Markets certainly expect big free money measures. We prefer to use a buy on sharp dips strategy till the bank of England meeting and European central bank meting ends (till 6:30 pm IST).
COMEX TECHNICAL VIEW
COMEX GOLD DECEMBER 2012 – current price $1605
Trading Strategy: Watch $1606
Bullish over $1598 with $1614 and $1632 price target
Bearish below $1588 with $1578 and $1563 as price target
Neutral Zone between $1588-$1598
Break point: $1607
- $1588 is the key support and gold needs to trade over $1588 to target $1616-$1632
- There will be buyers on dips as long as gold trades over $1580
- Trading call: Buy at 1594 stop loss $1584 target $1614-$1632
COMEX SILVER SEPTEMBER 2012 – current price $2743
Trading Strategy: Watch $2770
Bullish over $2758 with $2805-$2870 as price target
Bearish below $2725 with $2695 - $2590 as price target
Neutral Zone between: $2725-$2758
Break point: $2758
- Silver needs to float over $2735 to target $2805-$2905
- There will be sellers only below $2735
- Trading call: Buy at $2680 stop loss $2630 target $2815-$2835
COMEX COPPER SEPTEMBER 2012 – current price $338.00
Trading Strategy: Buy as near to $333
Bullish over $341 with $349 -$355 as price target
Bearish below $338 with $333.25-$328 as price target
Neutral Zone between: $338-$341
Break point: $339.10
- Looks bearish after repeated failures to break and trade over $350. However there will be a technical break down below $327
- There will be buyers on dips as long as copper trades over $330
- Trading call: Buy around $333 stop loss $327 for $353-$372
NYMEX CRUDE OIL (1ST CONTRACT) - current price $88.74
Bullish over $89.10 with $92.50 and $94.50 as price target
Bearish below $88.10 with $87.10- and $85.90 as price target
Break point: $88.50
- Crude oil can rise to $90.50-$97 by next week as long as it trades over $86. There will be a technical break only below $86
- Trading call: Buy at $85.50 stop loss $83.50 target $90.50-$92.50
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.
Disclosure: Insignia consultants or it employees do not have any trading positions on the trading strategies mentioned above. Our clients do have positions on the trading strategies mentioned in the above report.
Have a great weekend & Trade without emotions
"Print this report only if absolutely necessary. Save Paper. Save Trees."
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.
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
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-- Posted Thursday, 2 August 2012 | Digg This Article
| Source: GoldSeek.com
