-- Posted Friday, 23 August 2013 | | Disqus
· Silver needs to break and trade over $2354 for further gains. A daily close over $2250 today will be bullish for silver for next week.
There is a mad rush to buy gold from India, China, and Indonesia and all over Asia. This has prevented gold prices from falling. Gold has withered the entire tapering storm, some excellent news of US economic recovery, European economic recovery and Chinese economic recovery. The slump in the Indian stock markets and the rise in Indian gold prices to a near high will result in more and more people wanting to invest in gold (whether by hook or by crooked ways). In India we are in the second phase of the lust for gold. The real safe haven status for gold has just begun in India where economic growth is pathetic, businesses (particularly the manufacturing sector) are very difficult to operate, and stock markets and real estate prices are down. Gold is now the only savior for the Indians. It is only for these mini crisis like situations that will draw young Indians (who are biased to diamonds and equities for investment/jewelry) to invest in gold for the long term.
The next forty days are very crucial for gold and silver. Only if gold and silver start to rise from the first week of October that there will another big wave of rise. In case gold and silver fall on/after the first week of October then the chances of $1010 (gold) and $1775 (silver) will be high. The reason is that by the first week of October there will be clarity on the Federal reserve tapering issue.
Between October and February 2013, the speculation and decision on the next Federal Reserve chief will affect the US dollar and global financial markets. There are two main contenders, Yellen and Summers. Investors are of the belief that in case Summers is appointed as the next federal reserve chief then the pace tapering will rise and that US interest rates will return to normalcy quicker than most expect. This can have a negative effect on commodity prices. Of course the base will always be US economic growth and US employment which has to stabilize (if not rise/fall) for any major policy changes.
TECHNICAL VIEW
COMEX SILVER SETPEMBER 2013 – current price $2313.50
Bullish over $2270 with $2365-$2457 as price target
Bearish below $2245 with $2201-$2035 as price target
Neutral Zone between: $2245-$2270
Break point: $2340.00
- Silver can rise to $2500 by next week as long as it trades over $2250
- By next week there will be sellers only below $2250 or failure to break $2500
MCX SILVER SEPTEMBER 2013 – prices in Indian rupees
There is a technical congestion between 52800-53400 and only a break of this zone will result in 55000-59000 in the short term. On the key lower side 49700 is the initial support with 47100 as the key short term support. We are against going long unless 52800-53400 zone is convincingly broken.
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 Friday, 23 August 2013 | Digg This Article
| Source: GoldSeek.com
