-- Posted Wednesday, 4 December 2013 | | Disqus
Higher crude oil prices should keep gold and silver prices from a big fall. Momentum is still bearish for gold and silver while technically oversold conditions exist. There can be a sharp rally anytime if and when US economic data releases are below street expectations. We prefer to use caution going short at current prices for the next three days till Friday despite the bearish momentum.
Indian silver demand zooms
Silver imports jumped 40 percent to 338 tonnes in October from 241 tonnes in September, GFMS data showed. As per Reuters estimates, by the end of the year, silver imports should be at 5,200-5,400 tonnes, which would be more than India's record high purchases of 5,048 tonnes in 2008. Our view: India will continue to be a guzzler of silver as higher gold prices and an increase in the number of chain pulling incidents in every city of India deter more and more people from wearing gold chains in their daily lives. The pathetic law and order situation in Indian cities has resulted in more and more Indians switching to silver jewelry.
Any hints of a further delay in tapering or a move away from zero interest rates will trigger the next big rally in gold and silver. Markets have already priced in the higher end side of US economic data release. If they disappoint then gold and silver will see a very sharp relief rally.
TECHNICAL VIEW
COMEX GOLD FEBRUARY 2014 – current price $1220.70
Bullish over $1214.00 with $1242.40 and $1269.00 price target
Bearish below $1206.00 with $1196.90 and $1186.40 as price target
Neutral Zone between $1206.00-$1214
Break point: $1206.40-$1214.00
- There is a technical congestion between $1206-$1214 and gold needs to trade over this zone to target $1242 and more.
- There will be another wave of selling only below $1206
- The overall trend is still bearish but there are can be sharp pullback rallies.
MCX COPPER FEBRUARY 2014 – prices in Indian rupees
Copper is consolidating in 439-444-451 range and this range will be broken anytime soon and a new range will be formed. Today copper needs to trade over 443 to target 449-453. In the short term as long as copper trades over 435 the chances of a rise to 461 are very high.
NYMEX CRUDE OIL (1ST CONTRACT) - current price $97.23
Bullish over $96.00 with $98.60 and $102.20 as price target
Bearish below $95.20 with $94.10 and $93.30 as price target
Break point: $96.00-$97.20
- 200 day moving average at $98.4650 is the key resistance and only a break of $98.4650 will result in $102.48
- There will be sellers only below 96.00.
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 Wednesday, 4 December 2013 | Digg This Article
| Source: GoldSeek.com
