-- Posted Wednesday, 15 May 2013 | | Disqus
Technically gold and silver are looking bearish. Copper and crude oil are in a neutral zone. Gold needs to trade over $1422 (on daily closing basis) to prevent another big sell off. Silver needs to trade over $2290 (on daily closing basis) to prevent another big sell off. US dollar – Japanese yen continues to trade over 102 suggesting more weakness for the pair. There will be long covering if gold falls today. Traders will now start taking positions for the US PPI, US April industrial production numbers and US April housing market index today.
The next three days are very crucial for gold and silver as they need to trade over $1422 and $2290 to be in a bullish zone. US economic data releases will be the key apart from the direction of the greenback.
My view on reserve bank of India (RBI) move to curb gold imports
I am criticizing the reserve bank of India (RBI) move to curb gold imports. In my view there is a nexus between RBI and politicians. The gold price rise over the past four years had resulted in some of the politicians taking bribes in gold. With general elections near these politicians would like to off load some of their gold. Premiums on gold bars will rise due to the RBI move. The politician makes merry. If the RBI was so concerned over gold being the sole culprit of India’s huge current account deficit (CAD) then this move should have been a year before and not a year later in an election year. I believe that this will be withdrawn by September/October before the festival season once again to get political mileage before key state elections in November and December of this year.
Intra day volatility will rise.
COMEX TECHNICAL VIEW
COMEX SILVER JULY 2013 – current price $2326.00
Bullish over $2367 with $2413-2510 as price target
Bearish below $2310 with $2277-$2177 as price target
Neutral Zone between: $2310-$2367
Break point: $2325.00
- Silver can fall to $2270 and $2170 if it does not break and trade over $2410 by Friday
- There will be another wave of selling only below $2310 to $2277 and $2177
MCX SILVER JULY 2013 – prices in Indian rupees below
Failure to break 46400 by the end of the month can result in fall to 43200 and 41100. Intraday silver needs to trade over 43900 to be in bullish zone and target 45000-45800
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 Wednesday, 15 May 2013 | Digg This Article
| Source: GoldSeek.com
