-- Posted Thursday, 5 September 2013 | | Disqus
US August private ADP numbers will be the key today apart from Syria. We just need to remain on the sidelines for gold and silver. Gold needs to break $1437.30 or fall below $1373.30 for direction. Gold will break the $1373-$1411-$1437 range by Monday and form a new range. We just need to wait and watch. Silver needs to trade over $2336 for the rest of the day to be in a bullish zone. Be prepared for very big one way moves in gold and silver by tomorrow.
Gold imports from India should rise now on procedural clarification by the Indian custom department. Hopefully this will increase gold availability for the October festive season. There is an increase in scrap sales of gold in India.
India
The reserve bank of India’s new governor announced a number of measures to ally foreign investor fears. RBI opened the door wide to dollars from NRIs and foreign borrowings by banks, by subsidizing the cost of using these funds locally. At present, banks do not go all out to raise non-resident deposits because to use them locally, they have to swap them into rupees. A swap enables a bank to get back the same quantity of dollars to repay when the deposit matures even if the rupee has depreciated since then. Typically forex swaps cost around 7%, which increases the cost of a dollar deposit equivalent to 12.73%. The RBI has offered to provide swaps at 3.5%, making them very attractive for banks. The governor also reversed some of the capital controls, promised new bank licenses by January and hinted at reversing some liquidity tightening measures. The RBI partially reversed an earlier decision allowing companies to take over foreign businesses up to four times their net worth if funds came by way of external commercial borrowings.
Our view: The measures taken by the RBI will result in temporary gains for the Indian rupee. Thereafter global factors such as tapering by the Federal Reserve and Syrian issues will dominate. The key will be to stabilize the Indian rupee in a range which has been moving like a dragon for quite some time.
COMEX COPPER SEPTEMBER 2013 – current price $326.00
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: $330.50
- Copper needs to trade over $321 on a daily closing basis till Monday to be in a bullish zone. There will be a technical break down below $321 to $311.
MCX COPPER NOVEMBER – prices in India rupee below
Short term view: Copper can fall to 458.50-432.70 in the next two months as long as it does not break 530.80. Only a break of 530.80 will result in another wave of rise. Initial resistance is at 486.80.
Today’s view: Copper needs to trade over 486.80, else it will fall to 476.90 and 468.80. There will be a technical break down below 476.90.
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 Thursday, 5 September 2013 | Digg This Article
| Source: GoldSeek.com
