-- Published: Wednesday, 29 October 2014 | Print | Disqus
The Ghost of the FOMC meet has resulted in range trade in all metals and energies. Gold, silver and crude oil can see big one way moves anytime. A hawkish stance on interest rates by the Federal Reserve can result in gold rising to $1320 and silver rising to $1930. Once the Federal Reserve meet is over, we have the US senate elections next week and US October nonfarm payrolls apart from the European central bank meet. These events can have a big impact on the currency markets as well as the US dollar.
Indian demand for gold and silver should rise from next week as we near the start of the Hindu marriage season. The momentum is hyper bearish for gold and silver. I still prefer to play the contrarian call for bullion and more so for silver. Technically gold and silver are in a neutral zone.
Another reason for me to be bullish on gold and silver is the “Islamisation of Europe”. With the passing of every year there is a big increase in the numbers of people converting to Islam (from other religions). This will change the political landscape of every European nation. Politicians do everything to remain in power. They will take every measure to get more and more of the Islamist vote. The rise of Islam as a religion in Europe will result in European nations being less peaceful like India. The end result is more and more demand for hard assets. Only “E asset class” (electronic asset class like bitcoins) can give a challenge to hard assets.
TECHNICAL VIEW
COMEX GOLD DECEMBER 2014 – current price $1229.40
Bullish over $1223 with $1238.10 and $1258.80 price target
Bearish below $1215.00 with $1206.10 and $1199.00 as price target
Neutral Zone between $1215 and $1223
- Gold needs to trade over $1223 to rise to $1248 and $1266
- There will be sellers only if gold trades below $1223 in US session in case gold does not break $1243 today.
MCX SILVER DCEMBER 2014 – prices in Indian rupees below
There are two technical possibilities after the FOMC meet (a) Failure to break 39600 by Monday will result in a fall to 36875 and 35807 first (B) A break of 39600 by Monday will trigger the next set of rise to 41250 and 46814.
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, 29 October 2014 | E-Mail | Print | Source: GoldSeek.com
