-- Posted Wednesday, 22 May 2013 | | Disqus
There is nothing new in Federal Reserve officials telling the markets that an early withdrawal of QE is not there in the near term. Incoming US economic releases are mixed. Energy prices are rising and if they rise at current pace this summer then there will not be a withdrawal of QE till the next quarter of 2014. Lower interest rates, a mild rise in energy induced inflation and stable global economic growth will prevent gold, silver and other safe havens from a another big crash (at current prices).
Energy prices will be the key to global interest rate policy and gold and silver prices. If they rise then gold and silver will bottom out soon and vice-versa.
For the past two days gold and silver have risen after the European stock markets neared a close. This is a mildly bullish sign and if this trend continues today then we might just see another bullish wave formation.
Intraday volatility will rise. Bank of Japan meeting outcome will be the outcome.
COMEX TECHNICAL VIEW
COMEX GOLD JUNE 2013 – current price $1377.700
Bullish over $1372.00 with $1400.00 and $1436.00 price target
Bearish below $1357.20 with $1343.00 and $1317.00 as price target
Neutral Zone between $1357.20-$1375
Break point: $1385.10
- Gold needs to trade over $1367 for the whole day to target $1396-$1418
- There will be buyers on dips as long as gold trades over $1340
MCX GOLD – prices in Indian rupees
Key resistance is at 26550 and a break of 26550 will pave the way for 26900-27200. On the lower side support is at 25950 and there will be another wave of selling below 25950 to 25790-25480.
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, 22 May 2013 | Digg This Article | Source: GoldSeek.com