-- Posted Thursday, 6 September 2012 | | Disqus
COMEX DAILY REPORT
Copper, which had been lagging behind, has finally caught up with its peers and looks headed for $384. But copper is still fundamentally bearish and will be volatile. Jewelry demand for gold and silver in India is zero however. Indian investors are stashing up gold and silver.
We have the European central bank meeting today which will tell us the future policy direction. At the moment there is speculation that the European Central Bank's proposed bond-buying program would involve unlimited, sterilized buying. If the ECB meeting is not specific on future policy direction then the euro could see another wave of selling.
A BIT ON BARACK OBAMA – FIRST TERM AND EXPECTED FUTURE SECOND TERM
In the past nearly four years (under current US president Barack Obama) the global purchasing power of the US dollar has fallen at a very rapid pace and gold prices have zoomed. The decline in the purchasing power of US dollar has affected most of the global currencies. Investors have lost faith in the currency markets. The Federal Reserve’s sustained zero interest rate policy and further injection of additional liquidity has only increased speculation in commodities and nothing else. Additional money in the markets has not increased US consumption nor added to US economic growth in a big way.
If Barack Obama is re elected as the US president for another four years then gold prices can rise to $2250 and $5000. I am serious and not joking. A bear trend in gold will happen if the Federal Reserve starts to increase interest rates over 1.50%. This is unlikely to happen in the next eighteen months. There has been huge protectionism by the USA for its corporations. I expect more rise in global protectionism in the second term. There will be complete break down in the currency markets. Ben Bernanke’s copy book approach to manage the US economy without any rationale will boomerang.
The first term of Barack Obama has been marked without any scandals. The second term will see a good number of scandals and less global peace. The current global political situation is that of arms race in Asia, Eastern Europe and South America. This great Asian arms race has been created by the cold war NATO nations and Russia. I expect a major war between some Asian nations where US soldiers will not be involved. (Iran is a different issue). Barack Obama’s diplomatic skills will be tested in a big way in the second term.
History says that the second decade of every century has seen major wars such as the first world war in 1914. In 1517 Martin Luther nailed his theses to the door of Wittenburg church, sparking the Reformation of the church and rise of Protestantism. 1618 marked the start of the 30 Years War and decades of religious conflict in Western Europe. If history repeats itself then the second term of Barack Obama will see a major global war. Gold and other safe haven will rise.
Trade carefully in the next two days. It’s very easy to write blah, blah, blah but very difficult to follow what we write or read.
COMEX TECHNICAL VIEW
COMEX COPPER DECEMBER 2012 – current price $352.15
Trading Strategy: Technical breakout over $356 for $367-$384
Bullish over $349 with $356.50 -$365 as price target
Bearish below $343 with $339.40-$331.10 as price target
Neutral Zone between: $343-$349
Break point: $355.40
- So far so good for copper as it now needs to trade over $356 to target $367-$384.
- A weekly close over $356 tomorrow will result in $387 in the short term
- Trading call: Buy at $348-$349 stop loss $343 target $359.50-$362
MCX COPPER NOVEMBER 2012
(All prices in Indian rupees below)
Bullish over 437 with 444 and 452 as price target
Bearish below 434.50 with 431.10 and 427.60 as price target
Neutral Zone: 434.50-437
BREAK POINT: 437.10
· Copper needs to trade over 440 today to target 447-454. Key support is at 434.50
· There will be buyers only if copper trades below 440
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
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.
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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 Thursday, 6 September 2012 | Digg This Article
| Source: GoldSeek.com
