-- Published: Tuesday, 7 January 2014 | Print | Disqus
Yesterday’s fall in gold and silver after the release of ISM numbers and the recovery thereafter is just a trailer of the year. There will be more such moves every now and then. By now all of us must have woken from holiday affect effects. Central banks are trying their best to ensure that gold prices never rise and gold bulls are cremated as soon as possible.
There is only one piece of advice please trade carefully till Friday and start the year on a profitable note. Gold needs to break and trade over $1253 by Friday for another set of gains with $1232 as the key intraday support. Silver needs to break and trade over $2048 for another set of rise. As long as copper trades over $329 we prefer a buy on dips strategy for the rest of the week.
Janet Yellen’s appointment as the next Federal reserve president implies a continuation of Ben Bernanke’s current policies. I said last year that Europe will be the key to gold and silver prices. Incoming economic numbers from Spain, Germany and Eurozone yesterday showed signs of a recovery which if it continues this quarter could alter the monetary policy outlook for the rest of the year. Overall I believe that first quarter growth will be the key for central bank’s monetary policy. Central banks are still hyper cautious on interest rates. A strong and sustained European economic recovery will be negative for gold and silver.
Minutes of December’s Federal Reserve minutes meeting on Wednesday and December’s US nonfarm payrolls on Friday will be the key.
COMEX TECHNICAL VIEW
COMEX GOLD FEBRUARY 2014 – current price $1242.20
Bullish over $1226.00 with $1248.80 and $1269.40 price target
Bearish below $1216.00 with $1208.10 and $1196.00 as price target
Neutral Zone between $1216.00-$1226
Break point: $1239.60-$1224-$1253
- Gold can rise to $1253.60 and $1269.10 as long as it trades over $1234
- There will be another wave of selling only below $1234
- A daily close over $1237 today will be bullish for gold for tomorrow.
MCX GOLD DECEMBER – prices in Indian rupees below
Gold needs to trade over 28843 or break 29446 for another big set of moves. Initial support is at 29040. MCX gold two weeks view: Failure to break 29956 in the next two weeks will result in a fall to 27992 and 27595.
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: Tuesday, 7 January 2014 | E-Mail | Print | Source: GoldSeek.com