-- Published: Tuesday, 25 August 2015 | Print | Disqus
The fall in the global stock markets is a bit excessive. Overshooting and undershooting happens every time. This plunge has cast a doubt over the potential interest rate hike cycle of the Federal Reserve for its September and even December meeting. Any indication that the Federal Reserve will not raise interest rates in December should result in gold floating over $1200 in the final quarter of the year. Silver will track global stock markets and the US dollar. I believe that one should use the fall in silver prices to invest for the long term. No doubt, the fundamentals of all industrial metals are bearish. But a long term bottom should be formed before the close of the year.
There is a lot of talk over currency wars. The general consensus is that currencies should reflect fundamental values. But in reality it applies for the USA. China is trying to adjust its currency in line with fundamentals and there is a lot of anger as it destabilizes the global financial system. But China is not Europe. The American bully will not apply to China.
Failure of gold to break $1189 by 4th September will result in a fall to $1129 and $1063. Key support is at $1138.20
Silver needs to fall below $1425 or break and trade over $1581 for direction. Initial support is at $1473.
The next two weeks are very crucial for global stock markets, the US dollar and commodity markets. Focus will be on China and US interest rate futures.
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, 25 August 2015 | E-Mail | Print | Source: GoldSeek.com