-- Posted Tuesday, 9 July 2013 | | Disqus
The federal minutes of June’s meeting to be released tomorrow will be the key. Any hints that there are dissenting members on the tapering issue will result in gains for the Indian rupee and emerging market currencies, gains for gold, silver and other precious metals and weakness for the US dollar.
As long as gold trades over $1200 the chances of a rise to $1296-$1325 are higher. As long as silver trades over $1775 the chances of a rise to $2073-$2333 are higher. This is the technical view. The reason I am getting mildly bullish on gold and silver is that (A) there are huge short positions (B) The daily traders, jobbers and individual future trader is off the belief that gold and silver are a good short term sell at current prices. Most of the good news of the US economy and tapering by Federal reserve has already been factored in by the markets. Any below expectation US economic number release will result in massive short covering in precious metals and sharp weakness in the US dollar.
Copper is firm on expectations that Chinese officials will do all it takes to jump start the economy once again. For the rest of July as long as Comex copper trades over $290 the chances of a rise to $323-$346 are high. But fundamentally copper and base metals are still overvalued.
COMEX TECHNICAL VIEW
COMEX GOLD AUGUST 2013 – current price $1252.90
Bullish over $1236.00 with $1272.00 and $1306.00 price target
Bearish below $1220.0 with $1206.00 and $1182.00 as price target
Neutral Zone between $1220.00-$1236
Break point: $1252.00
- Gold can rise to $1272 and $1296 as long as it trades over $1230.
- There will be buyers on dips as long as it trades over $1220.
MCX GOLD AUGUST – prices in Indian rupees below
Gold can rise to 26801 and 27292 in the immediate term as long as it trades over 25600-25900 zone. There will be another wave of selling only if gold trades below 25600 in the US session any day. (The only risk to this view is a very sharp appreciation of the Indian rupee against the US dollar)
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, 9 July 2013 | Digg This Article | Source: GoldSeek.com