-- Published: Friday, 30 May 2014 | Print | Disqus
Month end short covering can result in gains for gold and silver. Oversold conditions exist. Weekend gold demand will be high in India. Traders will be stocking gold and silver today to meet the demand. Today I am a bit positive on gold and silver and hope that they will rise. There will be another wave of selling only if gold trades below $1248. In case silver is able to trade over $18.60 till 9th June, then the chances of a rise to $20.08 and $20.60 will be very high.
US economic data release include Chicago PMI and revised Michigan consumer sentiment index. Traders will start taking positions for next weeks US May, private ADP numbers. Employment related to Easter will not be there. I expect a mild fall in US employment numbers next week.
Yesterday the fall in US first quarter GDP numbers failed to affect bullion positively. Traders are expecting that US growth will pick up in the April to June quarter. I expect US growth to fall in the third quarter beginning July. Energy prices are still high and could be a huge drag on US economy.
Day Traders need to remain on the sidelines.
COMEX TECHNICAL VIEW
COMEX GOLD JUNE 2014 – current price $1257.20
Bullish over $1253.00 with $1265.00 and $1286.00 price target
Bearish below $1248.00 with $1240.00 and $1224.00 as price target
Neutral Zone between $1248 and $1253
- Key intraday support is at $1248 and there will be another wave of selling only below $1253
- Key support is at $1240.
- We prefer to buy only if gold trades over $1258 in UK session or US session
MCX GOLD AUGUST – prices in Indian rupees
There is a technical congestion between 25350 and 25650 and as long as gold trades over 25530-25650 zone, it can rise to 26550 and 27750. There will be a long term technical break down if and only if gold falls below 25350 anytime in the next three months
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 Chintan Karnani
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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-- Published: Friday, 30 May 2014 | E-Mail | Print | Source: GoldSeek.com
