-- Published: Friday, 31 October 2014 | Print | Disqus
So far so good for gold and silver bears. The big question is whether gold will fall below $1167 by next Friday and if silver trades below $1495 by next Friday. In case gold and silver trade below $1167 and $1495 (after the release of US October nonfarm payrolls) then one can expect another ten percent fall before December futures expiry.
We have the US senate elections next week, a European central bank meeting next week, and US October nonfarm payrolls next week. All these events can trigger short covering in gold and silver. Momentum is hyper bearish for gold and silver. Traders, investors and contrarian traders will use every rise to exit long positions and/or create fresh short positions in gold and silver.
Only higher Indian demand and higher Chinese demand for gold and silver can prevent a further rout. I quote what I have been writing most of the time “the quicker the fall, the quicker are the chances of a long term bottom being formed”. I want gold and silver to crash another fifteen percent in November as it will give a great long term investment opportunity with minimal risk.
COMEX TECHNICAL VIEW
COMEX GOLD DECEMBER 2014 – current price $1198.80
Bullish over $1206 with $1212.10 and $1228.90 price target
Bearish below $1192.00 with $1184.70 and $1167.00 as price target
Neutral Zone between $1192 and $1206
- There will be another wave of selling if gold trades below $1192 either in UK session or US session.
- Gold needs to trade over $1206 to attract short covering.
Indian physical gold price short term trend
The big question is whether gold falls below Rs.26500. There will be another wave of selling below Rs.26500 to Rs.25500 and Rs.24800. Physical gold premiums will rise with every fall. Till March gold has to trade over Rs.28500-Rs.29000 to attract short term hot money.
Trend till June 2015: To me one should aggressively invest in gold if prices fall to Rs.24500 and below. I do not foresee physical gold prices falling below Rs.23000 (unless the Indian rupee appreciates significantly against the US dollar) till June 2015.
(The above gold prices are Rs per ten grams of 24 carat purity levels).
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, 31 October 2014 | E-Mail | Print | Source: GoldSeek.com