-- Published: Thursday, 20 November 2014 | Print | Disqus
Speculation that the Swiss gold purchase referendum will fall short resulted in the selloff. The fall of gold and silver is a replica of the medium term market sentiment. We might see new multi-year lows if case gold and silver fall today and tomorrow. Buyers will for now stay away and will return if and only if there are indications of a bottom. FOMC minutes said that they should be on the lookout for signs of a decline in the public’s expectations for inflation, minutes of their meeting show. There is no change in the stance. The early snowfall effects on US economy needs to be assessed from a three month period.
Next week is a shortened trading weeks due to “Thanksgiving”. Higher income of people in USA will imply higher spending. “Thanksgiving” and “Black Friday” retail sales will also give us an indication on the expected US interest rate hike next year.
The key reason for me to be bullish on gold and silver for the long term are (A) I see big political changes in USA, UK and rest of the Europe in the next five years. The rise of “Islamic Faith” in Europe, UK, USA and Australia, apart from Asia should be hyper bullish for gold and silver. Most of the political leaders in Europe and USA are now Jews and Christians. In the next five years, I foresee a lot of a political leaders with bias towards Islamic extremism getting a good foothold all over Europe and Australia. May be in the next decade, Christians could be in minority in some European nations. (B) Digging for minerals and oil has an environment cost in the form a loss of forest cover. Fracking is the biggest ecological disaster of the twenty first century. If nations do not stop fracking with immediate effect, the pace of global warming will increase multi fold. Silver and even gold will be needed to reduce the pace of fracking induced global warming. Nations will sooner than later will stop reducing forest cover. Supply side pressures (after three years) will affect the users in a big way and will result in another big Bull Run gold, silver, copper and even nickel. (C) Global currency market will still be controlled by USA. Only the mode will be changed from US dollars to bitcoins and other electronic money. The intermediate phase between the death of the US dollar and rise of electronic money will be the best phase gold price rise. These are just a few factors. There are more which I cover in my updates, till the close of the year.
COMEX TECHNICAL VIEW
COMEX GOLD DECEMBER 2014 – current price $1178.10
Bullish over $1190 with $1203.00 and $1221.00 price t4arget
Bearish below $1178.00 with $1169.10 and $1155.10 as price target
Neutral Zone between $1178 and $1190
·Gold can fall to $1169 and $1144 as long as it trades below $1190
·Jobbers watch $1187 ad $1203
·There will be another wave of selling if and only if gold trades below $1169 either in UK session or US session.
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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