-- Published: Wednesday, 16 April 2014 | Print | Disqus
Volatility will rise today as Easter starts from today with Ash Wednesday. The first phase of a technical correction is over and further selling (if any) will be there only on a fall below yesterdays low. There are media reports that Russian troops have entered eastern Ukraine. It remains to be seen whether there will be a war or not.
The world gold council (WGC) report suggests that gold demand will drop this year only to rise for the next four years. We prefer to ignore the report and will prefer to focus on Ukraine and where US interest rates are headed. (a) Ukraine if it escalates will imply start of "Cold War 2". (b) Indication of US interest rate hike next year will determine the direction of gold prices (c) A Chinese economic slowdown will reduce Chinese demand for gold in the near term while India has yet to open official gold imports. However we expect Chinese and Indian gold demand to zoom in the last quarter of this year (d) There is no sizeable official Central bank gold purchases which could reverse due to Ukraine.
Trade carefully and trade intraday only till Monday. Friday markets are closed. Traders will now start to take positions for Tuesday.
COMEX TECHNICAL VIEW
COMEX GOLD JUNE 2014 – current price $1296.50
Bullish over $1306.00 with $1336 and $1352.00 price target
Bearish below $1296.00 with $1286 and $1272.00 as price target
Neutral Zone between $1296-$1306
Gold needs to trade over $1294 to prevent another sell off
Bullish trend will be there if gold trades over $1303 in the UK session and the US session
100 day moving average at $1277 is the key support
MCX GOLD JUNE - prices in Indian rupees
Gold can fall to 28400 and 28225 as long as it trades below 28660. There will be buyers only if gold trades over 28660. Key long term support is at 28225.
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.
Trade without emotions
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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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