-- Published: Wednesday, 29 June 2016 | Print | Disqus
The Istanbul airport attack will increase safe haven demand for gold. Europe is like the New Delhi of the mid-eighties/early nineties wherein everyday there was some form of terror threats. In New Delhi thanks to law enforcement agencies the chances of a terror strike are more or less zero but fears remain. Europe is like New Delhi. Unlike Indians who are used to terror threats, Europeans have something extra ordinary to deal with. Gold demand in Europe will zoom.
Just focus on technicals for now. There is a lot of concern that a fall in the UK affects others. Financial services employment and growth (apart from medical services) are the largest contributors to UK GDP. Sooner than later machines will conquer the financial services world. Further other nations want to grab a share of UK financial services. UK’s slowdown in growth can be made over by some other nations higher growth rates. There is very little risk to a sustained global slowdown due to the UK. Other factors will cause a slowdown in global growth and not just the UK alone. However uncertainty draws people to safe havens. The current global uncertainty has a very high evaporation point and will not vanish quickly.
Gold is either in a consolidation phase around $1300 for another big rise or there are chances of a mild inverted head and shoulder formation on the technical charts. Silver is looking bullish at the moment.
MCX SILVER SEPTEMBER – (previous day close Rs.43190)
Initial resistance is at Rs.43512. A break of 43512 will result in Rs.44812 and Rs.45530. Silver can rise to 44812+ as long as it trades over 42606. Big crash only below 42606.
COMEX SILVER JULY 2016 – current price $1808.00
Bullish over $1773 with $1823 and $1882 as price target
Bearish below $1749 with $1730-$1707 and $1672 as price target
Neutral Zone between: $1749-$1773
- There will be short covering if silver manages to trade over $1790 today to $1860 and $1905
- Initial support is at $1770 and as long as silver trades over $1770 downside risk will be limited.
- Trade very carefully between $1855 and $1885 zone.
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.
Trade without emotions
"Print this report only if absolutely necessary. Save Paper. Save Trees."
NOTES TO THE ABOVE REPORT
Follow us on Twitter @insigniaconsul1
UK session starts around 2:30 pm Indian Standard Time (+5:30 GMT) -- after the release of LME daily inventories
US session starts at 7pm 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.
THE TIME GIVEN IN THE REPORT IS THE TIME OF COMPLETION OF REPORT
Customer care: 9311139549
You can also mail your queries at ‘s
Chat Id: email@example.com (gtalk), firstname.lastname@example.org (yahoo)
(10:30 am to 5:30 pm Indian time, Monday to Friday)
| Digg This Article
-- Published: Wednesday, 29 June 2016 | E-Mail | Print | Source: GoldSeek.com