-- Published: Friday, 22 August 2014 | Print | Disqus
August and September spending by US consumers will be the key. If it rises then the chances of an interest rate hike by the Federal Reserve by January will be very high. In the next year, I will also be closely watching the US savings rate. Any uptick in the US savings rate will result in continued long term gains for the US dollar. A higher savings rate is the best indicator of a fundamentally strong economy. There are indications that there will be a reduction in US consumer debt and a rise in US savings. A rise in US savings should be accompanied by higher physical demand for gold, silver and platinum.
There is no US economic data release today. Asian demand will be the key to gold and silver. Technically gold, silver and crude oil are oversold. There can be a short covering rally in both of them. The Jackson Hole conference will be relevant if something significant is said or indicated.
TECHNICAL VIEW
COMEX GOLD DECEMBER 2014 – current price $1279.60
Bullish over $1270 with $1287.10 and $1303.00 price target
Bearish below $1262.00 with $1257.70 and $1241.40 as price target
Neutral Zone between $1262 and $1270
- The region of $1240-$1270 is a sort of a neutral zone as gold has managed to recover from this zone in the past one year.
- One needs to trade very carefully between $1240-$1270 zone.
- Jobber watch $1280 all the time
MCX GOLD OCTOBER 2014 – PRICES IN INDIAN RUPEES BELOW
Key support till Monday is at 27500. Gold needs to trade over 27500 till Monday to rise to 28120-28360. There will be a technical breakdown only below 27500 to 27286 and 26600. Day traders and jobbers watch 27800.
NYMEX CRUDE OIL (1ST CONTRACT) - current price $93.85
Bullish over $93.60 with $95.20 and $97.30 as price target
Bearish below $90.60 with $89.10 and $87.80 as price target
- Key intraday support is at $93.65. Crude oil needs to trade over $93.65 to prevent another big sell off to $90.90 and $88.70
- We prefer a buy on dips strategy as long as crude oil trades over $87 till end September.
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: Friday, 22 August 2014 | E-Mail | Print | Source: GoldSeek.com
