-- Published: Monday, 3 March 2014 | Print | Disqus
- US February nonfarm payrolls this week will be the key.
- Gold is technically bullish
Developments in Ukraine will be closely watched by the world. Gold will regain the status of safe haven in case of a war between the current Ukrainian government aided by the USA and its NATO allies and Russia. Traders who went short in gold on the hope of a taper by the Federal reserve this month and other positive sets of US economic data releases could short cover. The developments in Ukraine in the next two weeks are very important and will only increase the intraday volatility in bullion.
The US and its European NATO allies are digging too much into Russian interest. Mr. Putin has been silent on Libya, Egypt and Syria. This is time he has made the right move by making the first call and surprising NATO. If Ukraine escalates for a few months, then we just might see the beginning of another cold war. Gold bulls will be very happy at these developments. I just hope energy prices do not zoom as sustained higher energy prices could just derail the current global economic recovery.
US February nonfarm payrolls this week will still be important. The European central bank meeting and its guidance on interest rates will also affect the euro and commodities.
COMEX TECHNICAL VIEW
COMEX GOLD APRIL 2014 – current price $1344.30
Bullish over $1332.00 with $1348 and $1365.00 price target
Bearish below $1327.00 with $1319 and $1307.60 as price target
Neutral Zone between $1327.00-$1335
Break point: $1335
- Gold needs to break and trade over $1348 to target $1362-$1379
- There will be sellers only if gold trades below $1329 either in the UK session or the US session to $1319 and $1306
MCX GOLD APRIL - prices in Indian rupees below
Resistance is at 30141 and a break of 30141 will result in 30350-30598. Support starts at 30003 and 28931. There will be buyers if and only if gold trades over 30141 either in the UK session or the US session.
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)
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-- Published: Monday, 3 March 2014 | E-Mail | Print | Source: GoldSeek.com