-- Published: Tuesday, 9 December 2014 | Print | Disqus
It has been an excellent performance by gold and silver. They seem to be forming a base for a massive rise. Undaunted by gains in the US dollar and falling energy prices gold and silver have stood firm. Apart from the so called gold price manipulation, there are more justified reasons to restart the gold Bull Run. I have been a silver bull all my life and I am more than optimistic that 2015 will be a silver year. Silver’s long term fundamentals based on just industrial use makes me believe that the current prices are a once in a life time opportunity for long term investing. If there is any market excesses resulting in a price fall, the downside risk will be limited to a fifteen percent fall, followed by a sixty two percent rise (from the lows).
There are no big US economic data releases today. It will be a technical trade. Yearend profit booking whenever it starts can result in gold, silver, copper and crude oil all rising ten percent anytime. Day traders and jobbers who wish to short gold and silver need to be cautious. The twist here is that some nations affected are worried over deflation caused by crude oil prices. Most of the central banks prefer high inflation levels than deflation. Global interest rate increases (in 2015) by Federal Reserve and bank of England next year will be at a much slower pace than most expect. Nations like India where inflation is showing signs of a long term top being formed will cut interest rates quite rapidly next year. Gold performs well in periods of monetary excesses caused due to hyperinflation as well mild deflation. Diverging inflation and deflation scenes among the nations in the world will be supportive of gold and silver for next year.
Most the people expect gold prices to near $1000 next year. They have not yet invested in gold. I know one thing, financial markets have never lived up to investor expectations. They have always overshot or undershot investor expectations in a big way. Most of the retail investors (in my analytical experience) are caught short when prices are at near medium term lows and long when prices are at near medium term highs.
COMEX TECHNICAL VIEW
COMEX GOLD FEBRUARY 2015 – current price $1201.40
Bullish over $1192 with $1209.10 and $1226.00 price target
Bearish below $1184.00 with $1175.60 and $1166.80 as price target
Neutral Zone between $1184 and $1192
- Gold needs to trade over $1200 today to rise to $1215 and $1226
- Initial support is at $1192
MCX GOLD FEBURARY 2015 – prices in Indian Rupee.
Gold needs to trade over 26270 today to rise to 26630-26880-27112. There will be another wave of selling only if gold trades bellow 26270 either in UK session or US session. Jobbers watch 26270 and 26470 all the time.
MCX CRUDE OIL (1ST CONTRACT) - prices in Indian rupees below
Crude oil can fall to 3778 and 3596 as long as it trades below 3940. A daily close below 3940 today will be hyper bearish for crude oil with a very high chance of 3225 in the near term. Jobbers watch 3912 and 3970 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 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, 9 December 2014 | E-Mail | Print | Source: GoldSeek.com