-- Posted Monday, 12 August 2013 | | Disqus
The fall in Japanese second quarter GDP below expectations will result in more demand for gold and other safe havens from Japan. There is still firm demand of gold and silver from China and other East Asian nations. This will result in continued physical demand of gold from most parts of Asia. If gold prices show short term firmness then there will be short covering and a return of very short term hot money. For now I keep my fingers crossed over higher gold and silver prices despite technical bullishness. The tapering issue has been factored in by the markets - the only thing which we need to look into is the quantum of tapering and the future course of tapering after next month’s federal reserve meeting.
Marc Faber
In 1987, we had a very powerful rally, but also earnings were no longer rising substantially, and the market became very overbought,” Faber told CNBC on Thursday. “The final rally into Aug. 25 occurred with a diminishing number of stocks hitting 52-week highs. In other words, the new-high list was contracting, and we have several breaks in different stocks.” Our view: If Faber’s prophecy is true then gold prices will rise to $1550 in the short term as traders book profit in short gold positions and long stocks position.
US retail sale numbers tomorrow will be the key. Copper needs to break $340 this week else it will fall back to $316.10 and then rise.
COMEX TECHNICAL VIEW
COMEX SILVER SETPEMBER 2013 – current price $2080.50
Bullish over $2050 with $2137-$2295 as price target
Bearish below $2005 with $1970-$1940 as price target
Neutral Zone between: $2005-$2050
Break point: $2115.00
- Silver can rise to $2137 and $2371 as long as it trades over $2020
- There will be selling below $2020
- A daily close over $2070 today will result in $2371 in the short term
MCX SILVER SEPTEMBER 2013 – prices in Indian rupees
MCX silver can rise to 43864 and 45550 in the short term as long as it trades over 41615. Only a daily close below 41615 for three consecutive days will result in a mild bearish trend.
MCX Crude oil – prices in Indian rupees
Intraday crude oil needs to break 6397 to target 6523-6599. There will be sellers only below 6397
Short term view (3 months): Triple bottom has been formed at 6152 and as long as crude oil trades over 6152 it can rise to 6656-6949. Bearish trend will be there only below 6152 or failure to break 6878 in the next three months.
NYMEX CRUDE OIL (1ST CONTRACT) - current price $105.70
Bullish over $105.30 with $107.10 and $108.60 as price target
Bearish below $104.50 with $103.10 and $102.20 as price target
Break point: $105.70
- Crude oil needs to break $110 else it will trade in a $102-$110 range.
- 3 month view: Crude oil can rise to $117.80 and $129.80 as long as it trades over $97.40. Bearish trend will be there only a daily close below $97.40 or failure to break $117.80 in 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 Monday, 12 August 2013 | Digg This Article
| Source: GoldSeek.com
