-- Posted Tuesday, 1 October 2013 | | Disqus
The US government shutdown if it happens will be bullish for gold and silver. The effects will be (a) tapering or withdrawal of excess money will be postponed for the time being (b) US October monthly nonfarm payroll number will be postponed (c) There will be reduced consumer spending as well as reduced government spending in USA. Welcome to the final quarter of the year. There is lot of more surprises as the year comes to an end.
Today gold needs to fall below $1317 or break $1344 for direction. Silver needs to trade over $2120 or break $2235 for direction. Copper and crude oil are in a neutral zone.
Key factors which can affect gold and silver in October (apart from technical) are (a) Middle east: There is a calm in the middle east with a peaceful Syria and Iran trying to take the first step (though minute) to normalize relations with the USA. A peaceful middle east will be bearish for crude oil as well as gold (b) Tapering will continue to haunt bullion traders now and then, till as clarity emerges. It remains to be seen whether Federal Reserve officials are serious about tapering in the final quarter of this year. (c) Gold demand in India: October and early November is the key gold demand season in India. In September gold demand has been a virtual zero.
TECHNICAL VIEW
COMEX GOLD DECEMBER 2013 – current price $1329.60
Bullish over $1333.00 with $1344.10 and $1365.80 price target
Bearish below $1317.00 with $1311.00 and $1296.00 as price target
Neutral Zone between $1317.00-$13333
Break point: $1317.00-$1333
- Gold needs to break the 100 day moving average of $1344 for another set of gains. As long as gold trades below $1344 it can still fall to $1317 and $1304
MCX GOLD DECEMBER – October view – prices in Indian rupees below
400 day moving average at 29654 is the key support. A daily close below 29654 for three consecutive days will result in 28564-27773 and 25780. Only a break of 30514 will result in further gains to 31930-33900 and 35200. Key resistance for October is at 31930.
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, 1 October 2013 | Digg This Article | Source: GoldSeek.com