-- Published: Wednesday, 16 July 2014 | Print | Disqus
I had mentioned in last week’s updates that gold and silver will face the real challenge this week. So far they have failed. Going forward every bit and piece of US economic data release will be crucial for the metals, energies and the greenback.
The Federal Reserve chairman’s testimony indicating a quicker than expected interest rate rise resulted in gold and silver crashing for yet another day. Incoming US economic numbers till October will be the key. They need to be higher and also beat street expectations for the US dollar to gain and gold and silver to crash to $1140 and $1770.
A daily close below $1296 today will trigger another wave of selling for gold. Silver desperately needs to trade over $20.70 for another sell off. However if copper remains firm then silver will see wild swings.
Fundamentally (unlike June), there is no gold demand in India. Jewelers and gold importers are sitting idle. Gold and silver importers and jewelers will be using the current fall and further fall to stock up for the big demand season between September and the middle of November.
It is not all over for gold and silver bulls. The next three day are very crucial for gold and silver. Key US economic data releases in the Week Ahead
MCX SILVER SEPTEMBER 2014 – prices in Indian Rupees below
Silver needs to trade over 45100 today to target 45600-46200. There will sellers as long as silver trades below 45100 to 44576-44144-43812. We expect the Indian rupee to be mildly weaker against the US dollar which could limit silver price fall.
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: Wednesday, 16 July 2014 | E-Mail | Print | Source: GoldSeek.com