-- Published: Thursday, 19 March 2015 | Print | Disqus
Impact on gold and silver after FOMC meet: Postponement of expected June interest rate hike to a later month can result in a temporary rise in gold and silver. Whether the rise will be sustainable will be dependent on the ability to break and trade over key immediate resistances of $1184 and $1636. Overall gold is bullish as long as it trades over $1138 and silver is bullish as long as it trades over $1475 for the rest of the month.
BACK TO REALITY – WHAT NEXT AFTER FOMC MEET
Traders will now take positions for the “Easter Vacation”, next quarter and US March nonfarm payrolls. There should be higher manufacturing job gains in March as US manufacturers prepare for higher Easter sales. The snow effect is also less in March, so housing sector demand other economic parameters will be better than expected. The Euro/usd needs to break and trade over 1.1305 in the short term to attract short covering and option markets. In case the euro/usd does not break 1.1305 in April, then I once again see parity in April itself. Just ignore whatever crap the Federal Reserve says.
The same applies to gold. It needs to trade over $1200 for the rest of the month and the whole of April to attract short covering and induce short term traders into going long.
Silver in the short term needs to fall below $1460 or break and trade over $1760 for another fifteen percent one way move. However I am against going short in silver at current prices.
TECHNICAL VIEW
COMEX GOLD APRIL 2015 – current price $1173.30
Bullish over $1160.00 with $1180.40 and $1202.20 price target
Bearish below $1151.10 with $1141.10 and $1126.80 as price target
Neutral Zone between $1151.10 and $1160.00
Jobbers aggressive buy over: Buy over $1180 stop loss $1167 for $1202
Jobbers aggressive sell below: No call
- Gold has the best chance of a rise to $1202 and $1229.70 by next week as long as it trades over $1138.00.
- The next wave of buying will be there only if gold trades over $1180 either in the UK session or the US session
- Jobbers watch $1174 and $1166 all the time.
MCX GOLD APRIL – PRICES IN INDIAN RUPEES BELOW
Long term triple bottom was formed around 25500 yesterday. This implies that gold can rise to 26494 and 27561 in the short term as long as it trades over 25500. The next big wave of selling will be there only below 25500.
Today gold needs to trade over 26024 for the whole day to attract short covering and a quick rise to 26240 and 26604. Initial support is at 25846.
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: Thursday, 19 March 2015 | E-Mail | Print | Source: GoldSeek.com
