-- Posted Tuesday, 30 October 2012 | | Disqus
Executive Summary
· US stock markets are closed today also.
General market conditions
The effects on the US economy by the damage done by hurricane sandy will be the key. I am expecting more money supply by the Federal Reserve for reconstruction. Hurricane sandy will create more short term temporary jobs in the reconstruction and rehabilitation sector in November. October’s US jobs report on Friday may not be that good but November US jobs reports will show much higher employment. Demand for construction material and other stuff will rise in the areas affected by hurricane sandy. Whether the hurricane has an effect on the US presidential elections is difficult to judge at the moment.
I am asked questions on whether to buy gold for the marriages between December and March. My reply is to use the next ten days dips to buy gold for marriage. Ideally I will prefer to buy physical gold around Rs.31000/ten grams or below (current price Rs.31350/ten grams). In the next six months Indian gold prices will find it very difficult to break past Rs.33500/ten grams.
MCX GOLD TRADING STRATEGY
Sell MCX gold December futures at current prices in very small lots and on every Rs.500 rise till Rs.32500 and continue to roll it over till June contract. Average selling price will be over Rs.32000. Plus you get a minimum badla of Rs.300 per lot. Gold futures will be rolled over twice and one will receive a minimum badla of Rs.600 per lot. Use a stop loss of over Rs.34500. Assuming Indian rupee to appreciate to Rs.51.00 against the US dollar by end April and spot gold prices to rise $2100 by May 2013, Indian gold prices will not break past Rs.33000 per ten grams.
Another trading strategy will be to buy MCX gold at current prices and on every Rs.500 dip till Rs.30000 but sell US dollar-Indian rupee (usd/Inr) MCX-SX December futures. Sell equivalent amount of Usd/Inr in MCX- SX. Both the above strategy will work and give profitable results.
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, 30 October 2012 | Digg This Article
| Source: GoldSeek.com
