-- Published: Wednesday, 4 June 2014 | Print | Disqus
Ecuador indirectly selling its gold for US dollars is another strategy by the US government to protect the global value of the US dollar. US president Barack Obama has asked Eastern European states to increase their defense spending due to the Russian threat. Welcome to “Cold War 2”. That’s all I can comment. These crap moves will only unify Asia. The world knows of US hooliganism and they are not going to be moved by the carrots offered by NATO. Russia can never be a threat to Eastern Europe. American arms manufacturers have received lower orders as the US reduces troops in Iraq and Afghanistan. Obama’s trip to Eastern Europe is just to secure order for American arms manufacturing companies and nothing else.
Far right activist have started to get recognized in the European parliament. In the next ten years I see them gaining even greater people representation in Europe. This will change the face of Europe. Some of the European nations will be forced to move away from NATO quarters. The people of Europe have borne the cost of friendship with USA and they are in no mood to finance the Europe-American partnership. They very well know that America’s sole motive for friendship is profit.
These are all long term signals of a big long term rally in gold.
Today
US May private ADP numbers will be the key. Big moves in gold will be there either on a fall below $1230 or on a break of $1254. We prefer a buy on sharp dips strategy as long as silver trades over $1770 till Friday.
Geopolitical developments will be the key apart from US economic data releases.
TECHNICAL VIEW
COMEX GOLD AUGUST 2014 – current price $1245.70
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 $1252 in US session
MCX GOLD AUGUST – prices in Indian Rupees below
Resistance is at 25932 and a break of 25932 will result in 26136-26300. Initial support is at 25751 with 25550 as the key support. We prefer to sell only if gold trades below 25550 in 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
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PLEASE NOTE: HOLDS MEANS HOLDS ON DAILY CLOSING BASIS
THE TIME GIVEN IN THE REPORT IS THE TIME OF COMPLETION OF REPORT
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-- Published: Wednesday, 4 June 2014 | E-Mail | Print | Source: GoldSeek.com
