-- Posted Monday, 22 October 2012 | | Disqus
Executive Summary
· Silver 50 day MA is at $3255.
· Gold 50 day MA is at $1722.60
· Crude oil 100 day MA is at $89.99
General market conditions
Global economic risk once has once again haunted investors and that resulted in commodities and stock markets falling last week. Crude oil and energies have remained firm which makes me believe that the fall in commodities and particularly gold and silver will not be sustainable. I will be looking closely watching at the performance of the US economy from November onwards and if the US economy falters in next month then all the positive things on the US economy have been manipulated.
Indian gold demand
Physical gold and silver demand will rise substantially in India this week only if the Indian rupee does not weaken against the US dollar. If Indian gold prices rise over Rs.30800 (per ten grams) this week buyers will stay away. Gold buyers will be in a big way only if gold prices near Rs.31000 per ten grams and/or fall below Rs.30900 per ten grams.
There are huge longs in gold and silver in MCX in India and these will get squared over only if MCX gold December futures prices fall below Rs.30500 and MCX silver December futures prices fall below Rs.58400. These long positions are mostly by gold and silver short term investors taken after quantitative easing three by the Federal Reserve in September. However since gold and silver have not risen so far in October they are giving second thoughts and some of them are starting to panic. The Indian rupee will be the key for gold and silver prices. Weakness will not be sustainable for the rupee unless global economic crisis re begins. We might see some range bound trade between a Rs.30500-Rs.32000 wider range for MCX gold December futures for the next two weeks and thereafter global factors will decide the fate.
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 Monday, 22 October 2012 | Digg This Article
| Source: GoldSeek.com
