-- Published: Wednesday, 29 January 2014 | Print | Disqus
ASIAN METALS MARKET UPDATE
Technically gold and silver are in a neutral zone to bearish zone. Gold needs to trade over $1250 till Friday to prevent another sell off. Silver needs to trade over $1930 till Friday to prevent another sell off. Physical gold demand from China will rise if gold trades below $1240. FOMC meet tonight and US GDP numbers tomorrow will key the key. A $10 billion taper has already been factored in by the investors. Surprises will be the key for FOMC meet. Any policy shift announcement by the FOMC meet today other than taper (if any) is what I am looking forward.
If there just taper and/or future course of taper by the Federal reserve tonight then trade in the technical and ignore the rest.
Once the FOMC meet is over, traders will start to take positions for next weeks US January nonfarm payrolls. The US January nonfarm payrolls will be affected by inclement weather conditions and will not give a clear view of the state of US jobs markets. However since investors are obsessed with US jobs we will prefer to move on with the tide.
The fall in gold and silver is due to profit taking before the Federal reserve meet which if it continues till next week can market the beginning of a short term bear rally. In case gold falls after the FOMC meet then it be caught between physical buyers who will use the price fall to buy and bearish traders in thefutures market.
COMEX TECHNICAL VIEW
COMEX GOLD FEBRUARY 2014 – current price $1253.10
Bullish over $1250.00 with $1263.10 and $1284.00 price target
Bearish below $1242.00 with $1229.90 and $1216.30 as price target
Neutral Zone between $1242.00-$1250
Break point: $1250.10
Gold needs to trade over $1250 to target $1282+
There will be buyers on sharp dips as long as gold trades over $1225 today
MCX GOLD February -- prices in Indian rupees below
Today gold needs to trade over 29470 to target 29660-29874. There will be another wave of selling if gold trades below 29470 either in UK session or US session. Key support till Friday is at 29140.
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 employeeshave 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
UK session starts around 2:30 pm Indian Standard Time (+5:30 GMT) -- after the release of LME daily inventories
US session starts at 7pm pm Indian Standard Time (+5:30 GMT)
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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