-- Published: Monday, 14 April 2014 | Print | Disqus
Gold and silver are looking poised for another big rally. I do not understand the reasons for a weaker US dollar. Ukraine tensions and bullying by the USA and its allies in the past few years has not gone down well with world leaders. They are indirectly, overtly and covertly trying to reduce the usage of the US dollar. Example of recent bullying is last year in the pretext of tapering, there was emerging market selloff and near break down of emerging market currencies. This resulted in emerging markets opening more and more sectors to US and its allies thereby supporting some of the large and too big to fail corporations. Emerging nations when they cried for help were blatantly refused by these nations. Emerging markets are now trying to come out of last year’s slaughter and growth rates have started to pick up. This has resulted in the general trend towards currency appreciation in emerging market currencies. A stronger currency implies greater imports. A large part of these emerging market imports only benefit the American and European economies which will only add to higher growth rates. Higher growth rates will result in a move away from zero interest rates which could result in another emerging market crisis. Last week when the Reserve bank of India governor was telling the global central bankers of their collective responsibility and spillover effects, most them refused to acknowledge the same. The end result will be nations will once again try to look for ways to reduce US dollar foreign exchange reserves and also looks to bilateral trade treaties which will not involve the US dollar and any major currencies. I believe that we just might see a film called "Central Bank Foreign Exchange Reserve Part 2".
This is a shortened trading week. Trading volumes will start to fall from Thursday with the advent of Easter vacations. Watch the US dollar apart from technical.
COMEX TECHNICAL VIEW
COMEX GOLD JUNE 2014 – current price $1327.60
Bullish over $1319.00 with $1352 and $1377.00 price target
Bearish below $1311.00 with $1306 and $1296.00 as price target
Neutral Zone between $1311-$1319
- Gold can rise to $1352 and $1396 as long as it trades over $1311
- There will be buyers on dips as long as gold trades over $1311 this week.
COMEX SILVER MAY 2014 – current price $2006.50
Bullish over $1978.00 with $2028 and $2064 as price target
Bearish below $1954.0 with $1939-$1915 as price target
Neutral Zone between: $1954-$1978
- Silver can still rise to $2038 and $2100 as long as it trades over $1984
- Better to remain on the sidelines.
- We prefer a buy on dips strategy as long as silver trades over $1940 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
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UK session starts around 1:30 pm Indian Standard Time (+5:30 GMT) -- after the release of LME daily inventories
US session starts at 6pm 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: Monday, 14 April 2014 | E-Mail | Print | Source: GoldSeek.com