On expected lines, India indirectly opening up gold imports resulted in gold premiums falling sharply yesterday. This trend will continue for the rest of the day. Physical demand for gold will rise for now. In case global gold prices start to rise, then India's gold demand will zoom. Opening up gold imports is like a drought land getting rains. There are huge short positions in gold and higher Indian demand is the best case for gold to rise to $1400 and over. Margin reduction by CME of gold and silver should be bullish them.
There were no surprises in the FOMC minutes. In my view US May nonfarm payrolls will be the key and will determine the Federal Reserve June meetings outlook on interest rate and monetary policy.
The rise in Chinese manufacturing should prevent copper and other base metals from further large selling.
COMEX GOLD JUNE 2014 – current price $1292.70
Bullish over $1289.00 with $1309.00 and $1326.00 price target
Bearish below $1279.00 with $1271.00 and $1264.00 as price target
Neutral Zone between $1279-$1289
Gold needs to trade over $1282 to target $1303-$1311.
The recent consolidation phase of $1270-$1335 range will be broken in the next two weeks and a new range will be formed.
MCX GOLD JUNE - prices in Indian rupees below
Key support is at 27200 and gold needs totrade over 27200 to target 27678-28090. There will be sellers only below 27200 to 27064 and 26718.
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
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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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