-- Posted Friday, 30 August 2013 | | Disqus
· Syria will be the key
· Gold and silver are in a neutral zone
The GDP numbers from the USA suggest that tapering will be in place next month. The developments in Syria are mixed for the USA as the UK parliament has rejected taking part in Syrian attacks while France has called for a delay in attack on Syria. In my view there will be an armed attack on Syria on some pretext or the other. There are no doubts over the same. The Syrian uncertainty along with a Monday’s Labor Day holiday in the USA will prevent traders from going short in gold and silver over the weekend.
Traders will now start taking positions for next week’s US August nonfarm payrolls and the Federal reserve meeting. A daily close over $1400 in gold today and a daily close over $2370 for silver today will be bullish for next week.
Base metals
A sustained war in Syria will act as a further drag on global growth which will affect most of the nations around the globe (except the USA, UK, Germany and Japan). This will result in more losses for base metals. The Comex copper futures price of base metals reflect the long term demand-supply scenario. A sustained Syrian conflict can result in spiraling in global energy prices. By sustained war I mean a war which continues for a period of three months or more. However one should use the current fall and a further fall in base metals (if any) to buy far dated futures- one call also buy far dated call options.
TECHNICAL VIEW
COMEX COPPER SEPTEMBER 2013 – current price $327.10
Bullish over $331.00 with $338.00 -$342.40 as price target
Bearish below $327.10 with $319.10-$314.40 as price target
Neutral Zone between: $327.10--$331.00
Break point: $321.00
- Key long term support is at $321 and copper needs to trade over $321 to prevent another wave of selling.
- Remain on the sidelines and watch $321.00
MCX COPPER NOVEMBER – prices in Indian rupee
Key resistance is at 506 and a break of 506 will result in 512-520. As long as copper trades below 506 the chances of a fall to 489 and 474 are very high.
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, 30 August 2013 | Digg This Article
| Source: GoldSeek.com
