-- Published: Monday, 8 September 2014 | Print | Disqus
US August retail sales on Friday will be the key this week in a more or less data vacuum week. The focus will be on (a) Ukraine (b) Indian demand for gold and silver (c) Gold holding over $1258 and silver holding over $1888. US August nonfarm payrolls failed to have any impact on bullion as well as on the US dollar. Interest rates in USA will not rise in the way markets are expecting which should be bearish for the US dollar next year. I expect the US dollar to start a bear run once the US senate elections are over.
A bit more on geopolitical situation
A small town in Germany has nearly implemented the Islamic Sharia Law. The mayor of the town openly supports the implementation of Islamic Sharia Law. (though German officials deny the same). France, Germany, Denmark among other European nations are having a large section of population biased towards Islamic Sharia principles. Some of the so called western European Islamic youth are getting trapped to the Islamic state, which does not bode well global peace and prosperity. The Islamic state is also expanding due to social media and internet. Social media and internet now needs to be regulated for global peace and prosperity. The Chinese are doing it and more and more nations will follow the same. These are bullish news for long term parabolic run of gold and silver.
In short, there will be a big change in global political scenario over the next five years. The Obama, Merkel, Putin, Cameroon, Abe or a Hollande will not be seen in the world stage. New political parties in Europe will get more and more influential. These new political parties will be less biased towards US form of capilalism. Europe and American closed friendship will widen in the next five years. People in Europe and USA are aware of the mass killings which is happening under the aegis of these global leaders and they will shun them out of power. All these bodes well for long term bullishness of gold and silver. The world is slowly and steadily moving towards neo-natzee rule. I am seeing it happening though at a pace slower than snail.
Over the past few weeks, I have written a lot on the impact of expansion of Islamic State and its long term positive impact on gold and silver. I will not writing on this topic any more. The Russian church says that Putin has had a satanic influence over him. History has unlimited examples of the Church not being unbiased. The Obama, Merkel, Putin, Cameroon, or an Hollande have equal satanic influence over them if not more than Putin. The global Christian leaders as well the Islamic leaders have to take responsibility for the mass killings in Middle East and North Africa. At the end of the day killings and suffering does not create a distinction between religion. Our global leaders have forgotten humanity.
As long as gold trades over $1249-$1258 zone downside risk will be limited. As long as silver trades over $18.87 downside risk will be limited. Remain on the sidelines today.
MCX SILVER DCEMBER 2014 – prices in Indian rupees below
There is a mini double top at 42950 and only a break of 42950 will result in further gains. On the other side key long term support is at 41200. In the short term silver has to fall below 41200 or break 42950 for direction. Today silver needs to trade over 41680 to rise to 42450-42900. There will be a technical break down only below 41680. Jobbers watch 42100 all the time.
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 employeeshave 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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