Wednesday, 11 July 2012

Market Commentary

 Gold opened higher at 1595/1596 over optimism of Spanish Banks easy access to bailout funds coupled with good manufacturing data out of Italy and the U.K. The metal reached its intraday high of 1601.50/1602.50 soon after. Unable to find support here, profit taking alongside declines in equities began to take the metal lower. Gold reached its intraday low of 1578.50/1579.50 shortly before closing the session at 1579.50/1580.50.
Ø China’s lower import numbers for copper saw crude and other base metals lower overnight with silver opening slightly lower at 27.41/27.46. Gaining a little to its intraday high of 27.54/27.59 shortly after, profit taking then took the metal lower as base metals and crude further declined. Silver reached its intraday low of 26.87/26.92 shortly before ending the session at 26.91/26.96.
Technical Commentary
Ø Gold closed lower today at 1579. The downtrend from the March highs remains intact with trendline resistance at 1619. Support is in the 1548 to 1551 area, the lows from late June.
Ø Silver also traded lower, closing at 26.91 and making further progress towards a test of the 26.00 support level. There is trendline resistance from the downtrend at 28.16. The Gold-Silver ratio is trading higher at 58.43 with strong uptrend support at 57.12.
Technical levels for 11th July, 2012:
Metal
Support ($/oz)
Resistance ($/oz)
Gold
1,556.01
1,589.43
Silver
26.575
27.305
Economic Calendar:
Date
Economic Indicator
Country
Actual
Forecast
Previous
Effect & Remarks
11th July
Trade Balance
US
Pending at 6:00pm
-48.5B
-50.1B
If Actual > Forecast = Good for currency. Difference in value between imported and exported goods and services during the reported month.
11th July
FOMC Meeting Minutes
US
Pending at 11:30pm
NA
NA
It's a detailed record of the FOMC's most recent meeting, providing in-depth insights into the economic and financial conditions that influenced their vote on where to set interest rates
10th July
French Industrial Production m/m
EU
-1.9%
-0.9%
1.5%
As Actual < Forecast =Not Good for currency. Change in the total inflation-adjusted value of output produced by manufacturers, mines, and utilities have Decreased.
10th July
Italian Industrial Production m/m
EU
0.8%
-0.3%
-1.9%
As Actual > Forecast = Good for currency. Change in the total inflation-adjusted value of output produced by manufacturers, mines, and utilities have Increased.
Disclaimer: -
This report contains the opinion of the author, which is not to be construed as investment advices. The author, Directors, other employees of RiddiSiddhi Bullions Ltd. and its affiliates cannot be held responsible for the accuracy of the information presented herein or for the results of the positions taken based on the opinions expressed above. The above-mentioned opinions are based on the information, which is believed to be accurate, and no assurance can be given for the accuracy of the information. The author, directors and other employees and any affiliates of RSBL cannot be held responsible for any losses in trading. In no event should the content of this research report be construed as an express or an implied promise, guarantee or implication by or from RSBL that the reader or client will profit or the losses can or will be limited in any manner whatsoever. Past results are no indications of future performance. Information provided in this report is intended solely for informative purposes and is obtained from sources believed to be reliable. The information contained in this report is no way guaranteed. No guarantee of any kind is implied or possible where projections of future conditions are attempted. We do not offer any sort of portfolio advisory, portfolio management or investment advisory services. The reports are only for information purpose and are not to be construed as investment advices.

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