-- Published: Tuesday, 14 October 2014 | Print | Disqus
A weaker US dollar, expectations of reduced interest hikes by the Federal Reserve and higher demand in Asia, should contribute to higher gold and silver prices today and for the rest of the week. Global financial conditions have not changed since last week. Geopolitical risks have had a negligible impact on bullion prices. China, Russia and even Switzerland could be increasing their gold reserves.
Any signs of stabilization in gold and silver prices will result in short covering and higher investment demand. Cautious optimism is all I can comment.
Asian nations like India, China and Thailand are showing signs of a bottoming out of growth this year. Key gold consuming nations should see higher gold demand this quarter and from the second quarter of next year. Long term fundamentals are bullish for gold and silver. Short term negative still persists. Gold and silver now might see a battle between long term bulls and short term bears.
TECHNICAL VIEW
MCX GOLD DECEMBER 2014 – current price $1234.30
A mini head and shoulder formation on the charts which suggests that gold can rise to 27548 and 27791 by next week as long as it trades over the 26760-26897 zone. A bearish trend will be there if (a) gold falls below 26760 and/or (b) gold does not break 26760 by next week.
MCX CRUDE OIL (1ST CONTRACT) - current price $85.05
60 day view: Crude oil can rise to 5850-6250 as long as it trades over 4600. Initial support is at 5060. The long term support of 4600 can come if and only if crude oil trades below 5060 for two consecutive days. Right now crude oil is in a neutral zone to bearish zone.
Today’s view: Crude oil needs to trade over 5169 to rise to 5302-5454. There will be sellers only below 5169 to 5114 and 5061.
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: Tuesday, 14 October 2014 | E-Mail | Print | Source: GoldSeek.com
