-- Published: Wednesday, 12 February 2014 | Print | Disqus
- Fed Plosser -- Harsh winter weather leaves him skeptical of current economic data, has not changed economic outlook for 2014 -- reiterates concern that Federal reserve will resist raising interest rates for too long and be forced to chase financial markets
- Technically gold, silver, copper and crude oil are all bullish. The next three days are very crucial for gold and silver
Yellen's testimony and our view
Federal Reserve chairman Janet Yellen pledged to maintain her predecessor’s policies by scaling back stimulus in “measured steps,” saying in remarks to the House Financial Services Committee that economic growth has picked up and the labor market has seen “broad improvement.” Our view: US labor markets will improve as the weather turns hot. I do not foresee any significant increases in jobs growth in February. However I see US employment to start rising from March and April. US factories and the services sector will employ more before the Easter vacations in April. I expect a big rise in Easter sales in the USA and the Eurozone. We expect further monetary policy withdrawal from April onwards.
Gold now needs to break $1330 by 20th March to be in another bull run. In case gold does not break $1330 by 20th March then it will fall to $1210 and $1170.
Today gold needs to trade over $1272 to target $1296-$1312. A daily close over $1272 today will be bullish for gold in the short term. Silver will rise if and only if copper prices rise. Chinese factories will operate in full capacity from 15th February. Next week’s Chinese copper and silver demand will be the key.
There is not a US economic data release today. It will be a technical trade.
COMEX TECHNICAL VIEW
COMEX GOLD MARCH 2014 – current price $1285.50
Bullish over $1272.00 with $1296.10 and $1313.00 price target
Bearish below $1264.00 with $1255.10 and $1247.00 as price target
Neutral Zone between $1264.00-$1272
Break point: $1287.40
- Gold can rise to $1296.60 and $1319.10 as long as it trades over $1274
- A daily close over $1272 today will result in $1330.10 and $1375.50 in the short term.
- There will be sellers if and only if gold trades below $1272 in the US session after the Yellen testimony
MCX GOLD MARCH 2014 - prices in Indian rupees below
Gold can rise to 29464 as long as it trades over 28960. Initial support is at 29121 and there will be sellers if and only if gold trades below 29121 either in UK session or US session.
Bearish below $1964 with $1912.00-$1890.0 as price target
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
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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-- Published: Wednesday, 12 February 2014 | E-Mail | Print | Source: GoldSeek.com