-- Posted Monday, 12 November 2012 | | Disqus
Diwali greetings to all
General market conditions
Last week: Barack Obama has been reelected as US president and the stock markets have fallen thereafter. Gold and silver have risen on safe haven demand. The uncertainties on managing the US fiscal cliff needs to be addressed before the 31st December deadline. In 2011 gold prices rose to from $1480 to $1929 in less than five months on the delay in passing the US budget. If history is to repeat itself then any delay in addressing US fiscal issues then gold prices can rise to $2025 by the end of December or late January.
Only US fiscal issues are supporting gold prices at the moment. The rise in US consumer sentiment and other US economic numbers suggest that growth is here to stay. If the US economy is on a growth path then gold investment demand should reduce. It is too early to be over optimistic on the US economy. From December the effect of hurricane sandy will be felt on all US economy data releases which will tell us what is to be expected in the first half on 2013.
Technically all commodities are bullish. News from Europe will be the key as European finance chiefs meet today to seek a programme to seek a Greek solvency. Chinese export and import numbers are showing signs of a pick up in growth and should support base metals.
DIWALI AND GOLD INVESTING
Ever since I started analyzing gold it has given positive returns every Diwali. Indian gold prices have been rising every Diwali. But in 2012 it is a bit different due to a weaker rupee. (A) If the Indian rupee appreciates to 48.00 and below against the US dollar by next Diwali then gold investment returns by next Diwali will be marginal. (B) Only if the Indian trades over 52.00 against the US dollar that returns will be good by next Diwali. We prefer to invest in gold this Diwali only with a period of two years. For me gold is an evergreen investment and one can invest anytime. Silver returns since last Diwali has been lackluster. In the next three years silver return investing will outperform gold but silver will be volatile. My precious metal investment pick for next Diwali is neither gold nor silver but Platinum. The underperformer and old warhorse should be the big winner in 2013.
I am not giving any technical view today for Diwali. Togetherness and family happiness first trading later.
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.
Trade without emotions & Have a happy diwali
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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, 12 November 2012 | Digg This Article
| Source: GoldSeek.com
