-- Posted Monday, 26 November 2012 | | Disqus
General market conditions
Central bank buying of gold has been the key theme for the rise for the past decade. Let’s not forget that most central banks will increase their gold reserves over the coming years. The present is that we live in an unstable world where there is no real political unity in Europe, we live in a hypothetical paper world where everything is more virtual and less real, the US economy and the Japanese economy are sowing their own economic grave by following zero interest rate policy. Asia and Africa are in war courtesy the USA and Europe. From the Middle East and North Africa to Indo-Pak-Afgan region to Vietnam there is some form a political tension between neighbors. African nations are either in civil war or headed by fragile leaders. There is huge uncertainty in the globe. Gold relishes in time of uncertainty only. The USA and Europe will ensure that Asia and Africa are never in peace. If Asia and Africa are in a peace then who will buy their weapons and Asian and African growth rates will zoom and reduce the global might of the USA and European nations and their currencies.
India's net gold import for domestic consumption is likely to be about 800 tonnes this year following a pick-up in demand during the festive season, according to the World Gold Council. The rise in Indian gold prices by over Rs.1200 per ten grams in November will result in more inflows in Indian gold exchange traded funds and also more investment being done in physical gold. Those who invest in gold in India expect a return higher than that of bank fixed deposit and 2012 gold return in India has exceeded that of bank fixed deposit. The government is not concerned about gold consumption but gold imports which are expected to fall for another year.
There will be position squaring and rebuilding for December as Comex December futures expire this week. If there is a stalemate between European leaders over the Greece deal then the euro/usd will crash to 1.2475 from the current 1.2958 level and gold and other safe havens will rise.
COMEX TECHNICAL VIEW
COMEX COPPER DECEMBER 2012 – current price $351.20
Bullish over $348.80 with $358.70 -$365.10 as price target
Bearish below $342.00 with $339.10-$334.80 as price target
Neutral Zone between: $342.00-$348.80
Break point: $353.10
- Copper can rise to $361-$371 as long as it trades over $348
- Key intra day support is at $348
MCX GOLD DECEMBER – PRICES IN INDIAN RUPEE BELOW
Gold can rise to Rs.33000 and Rs.33600 if the Indian rupee weakens against the US dollar. Weekly support is at Rs.31700 and as long as Rs.31700 holds downside risk will be limited.
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
"Print this report only if absolutely necessary. Save Paper. Save Trees."
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
Customer care: 9311139549
You can also mail your queries at insigniacommodity@gmail.com
Chat Id: mcxsuretips@gmail.com (gtalk), insigniaconsultants@yahoo.com (yahoo)
(10:30 am to 5:30 pm Indian time, Monday to Friday)
-- Posted Monday, 26 November 2012 | Digg This Article | Source: GoldSeek.com