-- Posted Tuesday, 16 October 2012 | | Disqus
General market conditions
Economic numbers from the USA are on the higher side of expectations. Gold and silver have not rallied as per expectations after QE3. This has resulted in profit taking which if it continues till Friday could mark the beginning of a short term bear phase. Long term the bull trend is intact and one should use the current dip in gold and silver to invest for the long term.
Indian consumer and spending pattern
Its festival time in India and its also big discounts time in India. Gold demand from all forms should rise. The next month is a very good time to buy gold in India as prices will be attractive for buyers. If you can buy your mobile phone in installments then why not buy gold jewelry in installments. At least the value of gold will not depreciate like your mobile phone. The youth in India and those in the age bracket of 20 years to thirty years are more likely to have a higher spending on technology and gadgets than on gold and other assets. I would caution against too much spending on gadgets this Diwali as Windows 8 mobile phone/tablets and touch screen based laptops could change the way we live.
A bit on MCX gold and MCX silver long positions
As per the information with us there are huge long positions in MCX gold December futures around Rs.32000 (yesterdays close Rs.30977) and there are huge long positions in MCX silver December futures between Rs.62500 and Rs.63800. If MCX gold and silver futures fall for the next two days then margins pressures will result in most of these long positions to be squared off and a very sharp temporary slide in prices.
COMEX TECHNICAL VIEW
COMEX GOLD DECEMBER 2012 – current price $1738.70
The key long term support is at $1637 and gold can rise to $2025 and $2275 as long as gold trades over $1637. The risk to return ratio is in favor of the buyer from here.
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 Tuesday, 16 October 2012 | Digg This Article
| Source: GoldSeek.com
