-- Posted Tuesday, 12 March 2013 | | Disqus
- It will be a technical trade today.
The focus is on US retail sales tomorrow. Investor sentiment on gold and silver is highly bearish globally as well as in India. I would say is it is better to invest in physical gold for a period of three years to five years using the March and April price fall (if any). But one needs to wait for some time for futures investing in gold and silver. This is also an ideal time to invest in gold systematic investment plan (SIP) where one invests a specified amount every month either in gold ETF or in physical gold. SIP is the best investment option for gold and silver under the current market circumstances. After more than a decade of rise a bearish trend for two quarter to three quarter are a part and parcel of a long term long term bull rally and nothing else. Central banks of the likes of Russia, South Korea among others are not idiots for increasing their gold reserves.
But once again short term investing and long term investing are different things. The only risk to the bullish view on gold and silver is that of a pickup in US growth and Eurozone growth after June. If the US economy grows even at the current rate after June then the Federal Reserve will change its quantitative easing stance which will be bearish for gold and silver.
TECHNICAL VIEW
COMEX SILVER MAY 2013 – current price $2897.50
- Failure of silver to break past $2990 by Thursday will result in a fall to $2735 and $2610. Only a break of $2990 will resume another wave of rise.
MCX Gold April - prices in Indian rupee below
Key long term support is at 28700 and as long as gold trades over 28700 the chances of a rise to 30171 and 30960 are higher over the coming weeks. Only daily close below 28700 for four consecutive days will result in a medium term bearish trend 27300 and 26000. We prefer investing in gold (for a period of eighteen months) if physical gold prices fall below 28700 over the next three months.
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 Manan Somani
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, 12 March 2013 | Digg This Article
| Source: GoldSeek.com
