-- Published: Wednesday, 21 January 2015 | Print | Disqus
The longer gold and silver rise, the greater are the chances that it will attract short term hot money and medium term investment demand. The European central bank will only increase the availability of free money. It is just the quantum of free money which everyone is guessing. The European central bank will more than make up for the loss of global free money caused due to a Federal Reserve rate hike (if any) this year. In 2014 every rise in gold and silver had resulted in a net increase in short positions (just like open interest in crude oil prices). For now the rise in gold and silver has not resulted in an increase in net short positions which itself is a positive sign.
Trade in the technical. That’s all I can say. US economic data releases may not have a big impact on gold and silver. The direction of the euro will affect currency markets as well as commodity markets.
There are three upcoming baamboo’s (shock risk, slang for those who live in Calcutta), which includes two key central bank meetings in the next eight days and US employment numbers in early February. All these baamboo’s can change cause another roller coaster ride for investors.
Trade very carefully in the next three weeks. A bad trade can wipeout your capital in a few seconds. There can be wide divergences between closing prices and next day’s opening prices in the next three weeks. Low risk traders use spreads to hedge risk.
TECHNICAL VIEW
COMEX GOLD FEBRUARY 2015 – current price $1296.50
Bullish over $1277 with $1309.10 and $1341.60 price target
Bearish below $1262.00 with $1249.10 and $1231.80 as price target
Neutral Zone between $1262 and $1277
- Gold needs to trade over $1284 the whole day for another big wave of rise to $1313 and $1334
- Remain on the sidelines despite the bullish momentum.
- Jobbers watch $1296 all the time.
MCX GOLD FEBRUARY 2015 – prices in Indian rupees below
Gold can rise to 28950-29900 if it is able to break and trade over 28400 anytime for the rest of the month. Support is at 27710 and as long as gold is able to trade over 27700 downside risk will be limited.
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, 21 January 2015 | E-Mail | Print | Source: GoldSeek.com
