-- Published: Monday, 2 June 2014 | Print | Disqus
US May nonfarm payroll employment numbers will be the key to gold and silver. A low employment numbers will result in delaying of the interest rate hikes by the Federal reserve next week and gold and silver paring most of last months losses. Interest rates are directly linked to employment and consumption. There is an inverse correlation between bullion and US employment numbers. European central bank this week is expected to add more stimulus measures to its economy this week. The Reserve bank of India meet could give us a hint on the governments stance of opening up of gold imports in India.
There is a collusion between long term bullish direction in gold and silver and short term bearish direction in gold and silver. Traders are confused whether to use long term technical or short term technical for trading. For day intra trading one should use short term technical but for keeping the positions for next week one must check to see if long term supports are holding and/or long term resistances are broken.
Everywhere I read that gold prices have been manipulated. In my view America manipulates every financial markets and a majority of the ruling leaders in different nations are nothing but puppets of American presidents. In India the congress party after the Narsimha Rao government has been just a puppet of NATO. Gold and nations manipulation is something which investors are used to it and we need not bicker over it. The real challenge is getting a decent return on our investment despite all the road blocks created by the state.
The long term support for gold is at $1040. The long term support for gold is at $1770. In case gold and silver trades below $1040 and $1770 for fifteen continuous trading sessions anytime in the next three years, then I will become a long term bear.
Gold demand in India and China are on the rise. Momentum indicators are oversold. There can be short covering anytime. This week gold needs to trade over $1219 and silver needs to trade over $1818 to prevent further knock down.
Its official now that the European Union is being governed by Germany, France and UK. UK prime minister has got support from Germany to block Luxembergs Juncker as the president of European Commission. These will have long term effects on the continuity of euro and unity of the European Union. However for the rest of the year, I do not foresee this affecting euro.
COMEX TECHNICAL VIEW
COMEX GOLD AUGUST 2014 – current price $1257.20
Bullish over $1235.00 with $1262.00 and $1272.00 price target
Bearish below $1229.00 with $1219.00 and $1208.00 as price target
Neutral Zone between $1229 and $1235
- Key long term support is at $1235 and gold needs to trade over $1235 on daily closing basis to prevent a technical break down
- Better to remain on the sidelines today
- We prefer to buy only if gold trades over $1242 in US session
COMEX SILVER JULY 2014 – current price $1973.00
Bullish over $1892 with $1912 and $1937 as price target
Bearish below $1847 with $1818-$1798 as price target
Neutral Zone between: $1847-$1892
- 2013 low is at $1818 and silver needs to trade over $1818 to target $1937 and $2012
- Silver will track copper and gold
- There will be sellers only if silver trades below $1860 either in UK session or 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 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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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, 2 June 2014 | E-Mail | Print | Source: GoldSeek.com
