-- Published: Tuesday, 17 March 2015 | Print | Disqus
Investor sentiment towards gold and silver is hyper negative. They believe that they are the worst form of short term investment. They are not making any short term investment in gold and silver. However I believe that gold and silver need to be looked at from at least a two year period and then invest. If gold is able to give a higher return over US bond yields (which it is not at the moment), then gold will always be a better investment than US bond yields. The long term fundamentals of silver are a thousand times better than gold. Silver will zoom only when fundamental demand forces a massive short squeeze.
There is one thing which I have observed in my small professional career. Whenever there is higher demand for commodities from the USA and/or Europe (including the UK), commodities prices tend to fall. The reverse happens when there is higher demand for commodities from Asian, African and non USA and non-European nations. The reason in my view is that everything is priced in US dollars and somewhere down the investment line, the so called NATO alliance jerks up commodity prices whenever there is higher commodity demand from nations which are not a part of their alliance. At the moment, demand for metals and energies from the USA are on the rise and their prices are falling. Once the lagging effects of lower energy prices and the initial effects of a US interest rate hike are over, the rest of the world (non NATO nations) growth will zoom. Incremental demand for metals and energies from the NATO alliance will fall. When this kind of a situation happens, metals and energies will begin another long term bull run.
COMEX SILVER MAY 2015 – current price $1560.10
Bullish over $1514 with $1606 and $1660 as price target
Bearish below $1495 with $1479 and $1424 as price target
Neutral Zone between: $1495 and $1514
Jobbers aggressive buy over: No call
Jobbers aggressive sell below: Selling only if silver trades below $1514 either in the UK session or the US session stop loss $1539 for $1481 and $1469 (very high risk call)
- Silver needs to trade over $1560 today to rise to $1606 and $1660
- There will be another wave of rise to $1629-$1673 today itself if silver is able to trade over $1560 for the whole day.
- Jobbers watch $1560 all the time.
COMEX COPPER MAY 2014 – current price $267.50
Bullish over $265.10 with $273.60 -$283.10 as price target
Bearish below $257.70 with $253.90-$251.10 as price target
Neutral Zone between: $257.70 and $265.10
- Key resistance is at $274 only a break of $274 will trigger another wave of rise to $283 and $303
- Use any $10-$15 dip (if any) to buy for the month end with a stop loss $246
MCX SILVER MAY – prices in Indian rupees
Weekly view: Bearish trend will be there only if silver trades below 34300 after the FOMC meet or silver does not break 37460 by Friday. Right now silver is a neutral zone.
Today view: Silver needs to trade over 35000 to rise to 36100-36560. There will be another wave of selling if silver trades below 35000 either in the UK session or the 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 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, 17 March 2015 | E-Mail | Print | Source: GoldSeek.com