-- Published: Tuesday, 3 May 2016 | Print | Disqus
The current rise in gold and silver is backed by a weaker US dollar and expectation of a delayed interest rate hike by the Federal Reserve. Physical gold buyers are on the sidelines. Those who have purchased physical gold are not making new purchases. New physical gold investors are waiting for Friday’s US April nonfarm payrolls. It will be a technical trade after NFP with the US dollar as the key.
If gold and silver are able to trade over $1285 and $1740 till Friday, then chances of $1494 and $2125 by the end of May will be very high. Right now it is better to remain on the sidelines despite bullish factors. Investment demand in gold and silver will zoom if gold prices trade over $1300 and silver prices trade over $1800 from Monday onwards.
COMEX JUNE 2016 – current price $1296.55
Bullish over $1281.10 with $1307.60 and $1319.60 as price target
Bearish below $1271.10 with $1253.60-$1234.70 as price target
Neutral Zone between $1271.10 and $1281.10
- Only a break of $1309 will trigger another wave of rise to $1382
- The region between the $1290-$1309 zone is an anything can happen zone. There can be a $21 one way move anytime.
- Jobbers watch $1287 and $1301 all the time.
MCX GOLD JUNE – previous day close Rs.30294.
There is a technical congestion between Rs.30580 and Rs.31060. The overall trend is still bullish. However there will be corrections as long as gold does not break and trade over Rs.30580-Rs.31060. Gold prices will zoom to 33200 by the end of May, if it manages to trade over 31060 on Monday. Initial support is at Rs.29732. Bearish trend will be there only on a fall below Rs.29732.
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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-- Published: Tuesday, 3 May 2016 | E-Mail | Print | Source: GoldSeek.com