-- Published: Wednesday, 24 May 2017 | Print | Disqus
The UK terror attack has failed to support gold and silver. There is some speculation that Indian demand for gold and silver is higher as jewelers expect higher tax rates on the GST front (Goods and Services Tax). GST rates on gold, silver and jewelry sales will be finalized on 3rd June. Gold and silver demand will fall after 3rd June as jewelers reduce buying. I do not expect the Modi government to lend support to the jewelers of India. The Modi led NDA government has increased taxes on every industry which is labour intensive. Jewelry making is still a labour intensive industry.
The direction of the US dollar is the key for now. Gold and silver fell as the US dollar gained yesterday. Iran is once again the hotbed for American bloodshed after North Korea and Syria. Trade sanctions have failed to affect Iran. Trump’s speech in Israel suggests that over the coming months there will be bloodshed between NATO and Iran. In the short term gold and silver can fall. Medium term to long term bullishness is intact.
There is massive speculation of Trump’s impeachment. I asked my friend Peter Spina of www.goldseek.com on this. According to him, it could happen next year. Trump’s woes will be bullish for bullion.
COMEX GOLD JUNE 2017 – current price $1251.30
Bullish over $1255.80 with $1265.10 and $1272.30 as price target
Bearish below $1249.40 with $1241.30 and $1228.80 as price target.
Neutral Zone between: $1249.40-$1255.80
- Gold needs to trade over $1249 to prevent a fall to $1241 and $1228.
- Rise only if gold trades over $1256 either in the UK session or the US session.
MCX GOLD JUNE – prices in Indian rupees below
Key support is at 28689. Gold needs to trade over 28689 to rise to 29025. Sell off only below 28689 to 28591 and 28372. Remain on the sidelines despite the mildly bearish trend.
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 1:00 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.
THE TIME GIVEN IN THE REPORT IS THE TIME OF COMPLETION OF REPORT
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-- Published: Wednesday, 24 May 2017 | E-Mail | Print | Source: GoldSeek.com
