-- Posted Tuesday, 21 August 2012 | | Disqus
Executive Summary
· Europe will be the key this week.
A bit on Indian investors view on their gold investments
Indian investors are getting a bit wary on their gold investments. (Particularly gold ETF investments). Indian gold prices have been range bound between Rs.29,200 and Rs.30,700 since April. Based on investor queries which we receive we believe that if Indian gold prices do not start to rise in the next two months to three months (By November 2012), there will be a fall in total gold ETF investments in India. Investors will book profit on their gold ETF investments and may switch to equities and other investments.
At the moment Indian investors are using any Rs.300-Rs.400 dip in gold prices to invest in gold. Range bound Indian equity markets along will negative Indian economic fundamentals have resulted in continued interest in gold as an investment.
(Gold prices are rupee/ten grams in above).
Chinese gold ETF’s
A number of Chinese fund managers are gearing up to launch gold exchange-traded funds (ETFs) to meet a growing domestic demand for alternative investment channels. Guotai Asset Management, Bosera Asset Management and E Fund Management have permission to develop gold ETFs with the Shanghai Stock Exchange and the Shenzhen Stock Exchange.
China, the world's largest gold producer, is on its way to overtake India as the top gold consumer this year. China's gold investment demand more than doubled between 2009 and 2011, contributing to a 70 percent jump in overall gold demand, according to the World Gold Council.
Our view: A Chinese gold ETF will be very bullish for gold and gold prices will rise to $2200 and further to $3300 in the next two years.
TODAY
It will be a technical trade with focus on the developments in Europe. Technically gold, silver and crude oil are bullish while copper is in a neutral zone.
Trading strategy for the very large traders and high risk traders
COMEX COPPER: Buy on sharp with a stop loss below $331. Jobbers can sell copper below $336 for $334-$331
NYMEX CRUDE OIL: Sell only if crude oil trades below $95.00
COMEX TECHNICAL VIEW
COMEX SILVER SEPTEMBER 2012 – current price $2865.50
Trading Strategy: watch $2860
Bullish over $2825 with $2905-$3050 as price target
Bearish below $2790 with $2748 - $2705 as price target
Neutral Zone between: $2790-$2825
Break point: $2858
- A daily close over $2860 will result in $2960 and 3200 in the next few days
- There will be buyers on dips as long as silver trades over $2760
- Trading call: Buy at $2800 stop loss $2740 target $2905-$3005
MCX SILVER SEPTEMBER 2012
(All prices in Indian rupees below)
Bullish over 53900 with 54600-55600 as price target
Bearish below 53600 with 53300-52800 as price target
Neutral Zone: 53600-53900
BREAK POINT: 54200
- 54200 price target achieved. Silver can rise to 56000 and 59000 in the short term as long as it trades over 53200.
- Only a daily close below 53200 for three consecutive days will alter the current bullish formation.
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.
Trade without emotions
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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 Tuesday, 21 August 2012 | Digg This Article
| Source: GoldSeek.com
