-- Published: Monday, 6 January 2014 | Print | Disqus
Minutes of December’s Federal Reserve meeting on Wednesday and December US nonfarm payrolls on Friday will be the key. U.S. services sector on Monday and durable goods orders report will be the key. Technically gold needs to trade over $1237 this week to target $1269 and $1281. The greater the rise, the more short covering will be seen in gold. We are against going short in gold prices at the moment and will prefer to wait and watch for some more time before taking a call. Silver will see a big one way $100-$200 move anytime in the next two weeks.
The big answer which all be looking forward is the next possible date for further monetary withdrawal. Gold and silver will sing the time frame of the next monetary stimulus frame. (A) The greater the delay in withdrawal from the next round of tapering by the Federal Reserve the greater will be the chances of a continuation of the current short term bull rally in gold. But the Federal Reserve will still need to give a clear view on the next batch on tapering. If the Federal Reserve gives mixed signals and/or hawkish then short covering in gold will continue. (B) The key theme for 2014 for bullion investors will be the pace of US economic growth and the pace of Eurozone growth and interest rate rise factor. (In 2013 the key event was tapering by the Federal reserve).
TECHNICAL VIEW
COMEX SILVER MARCH 2014 – current price $2029.00
Bullish over $2008.00 with $2080.00-$2145 as price target
Bearish below $1984 with $1960.00-$1938 as price target
Neutral Zone between: $1984-$2008.00
Break point: $2008.50 and $2048
- Silver can rise to $2048-$2109 as long as it trades over $1976.0
- Silver will crash if and only if copper and gold both fall.
- There will be another wave of selling if silver trades below $1960.00 any day.
- We prefer a buy on dips strategy as long as silver trades over $1960 today.
MCX NATURAL GAS JANUARY 2014 – prices in Indian rupees below
Failure to break 286 this week will result in a fall to 261 and 254. Only a break of 284 will result in another set of rise.
NYMEX CRUDE OIL (1ST CONTRACT) - current price $94.20
Bullish over $93.90 with $95.60 and $98.10 as price target
Bearish below $93.30 with $92.20 and $90.80 as price target
Break point: $93.30 and $93.90
- 400 day moving average at $94.79 is the key resistance,
- There is a technical congestion between $91.77 and $93.80 and crude oil needs to trade over $91.77-$93.80 for the rest of the month to target $100.60. There will be a long term technical breakdown only a daily close below $91.77 for a few days.
- We prefer a buy on sharp dips strategy with a stop loss below $91.60 this week.
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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-- Published: Monday, 6 January 2014 | E-Mail | Print | Source: GoldSeek.com
