Thursday, 1 December 2011
GOLD (Spot) intraday
BUY @ 1736, Stop at 1724 with 1754 & 1759 in sight.
The downside penetration of 1724 will call for 1712 & 1703.
MCX GOLD INTRADAY : MCX SILVER INTRADAY :
Action1: BUY (57400) with stop (57095) for tgt= 57970, 58370
FEB GOLD MAR SILVER
Resist: 1751.80-1754.40*, 1770-1776.70 ST
Supprt: 1729.00, 1723.30, 1700.40*
Comment: The market is still in a bear trend, but yesterday’s surge higher places trade against key 1754.40* resistance. Posting a close over 1754.40* signals rallies to the recent downturn gap at 1770-1776.70 and chance to test against the last swing high. If trade backs off from 1754.40*, then expect sideways congestion in the upper half of yesterday’s rally. A close under 1700.40* is needed to recapture bear trend
MAR SILVER
Resist: 32.97-33.13, 33.77*
Supprt: 32.08, 31.85, 31.15
Comment: The market remains in the negative turnover, but closes under 31.15 and 30.95 are needed to renew the slide to 29.83*. Yesterday’s outside bull reversal signals for rebounding action to push for a test of the 33.77* resistance. A close over 33.77* signals a bull turn that should spark rallies to attack the last 35.65 swing high. Any congestion inside the upper half of yesterday’s range should provide a staging level to attempt further rallies.
COMEX SILVER (MAR) COMEX GOLD (FEB)
12/01/2011:
The near-term upside target is at 3434.0. The next area of resistance is around 3382.0 and 3434.0, while 1st support hits today at 3193.0 and below there at 3062.0.
11/30/2011:
The near-term upside objective is at 1789.5. The next area of resistance is around 1774.5 and 1789.5, while 1st support hits today at 1724.2 and below there at 1689.5.
The near-term upside target is at 3434.0. The next area of resistance is around 3382.0 and 3434.0, while 1st support hits today at 3193.0 and below there at 3062.0.
11/30/2011:
The near-term upside objective is at 1789.5. The next area of resistance is around 1774.5 and 1789.5, while 1st support hits today at 1724.2 and below there at 1689.5.
PRECIOUS METALS RECAP
11/30/2011
February Gold closed up 30.7 at 1749.6. This was 45.3 up from the low and 5.1 off the high.
March Silver finished up 0.854 at 32.804, 0.191 off the high and 0.619 up from the low.
The gold market started out off balance and fearful of another day of over hanging Euro zone debt fears. However, the risk off vibe that was trying to entrench early in the session was tosses aside and a risk on vibe was put in its place. Clearly the ECB's actions weren't the main pillar in the shift in sentiment as coordinated liquidity intervention and much better than expected US employment data added into the positive physical commodity market environment today. With a weaker dollar, a quasi easing move from the Chinese and a very sharp US equity market rally the bull camp certainly had a number of arguments in their favor. Some traders will suggest that the Chinese easing move was the primary factor behind the bullish buzz today while others think the Euro zone situation was the 800 pound gorilla hanging around the neck of the market and therefore the reduction in anxiety toward that situation
The silver market managed to foil the bear camp which seemed to have an early edge today. However, silver was helped by a dramatic improvement in macro economic sentiment that was the result of coordinated central bank action and much better than expected US scheduled data flows. It is also likely that significant strength in copper lent some spill over support to silver prices in the trade today. As mentioned in the mid day coverage silver didn't seem to be markedly undermined by news of a noted increase in Mexican silver production over year ago levels. Today silver was a physical commodity market that benefited from an improvement in the macro economic outlook.
MARKET TALK: Gold Prices To Rise In 2012 - SEB
SEB expects gold prices to rise in 2012 as central
bank buying, low interest rates and macroeconomic risks continue to support the
yellow metal's status as a safe store of value. "Gold is continuing to perform
well in the prevailing environment of extremely low interest rates and great
uncertainty about economic growth," the house says. "High and possibly
increased market liquidity, negative real interest rates and systemic risks
will be underlying forces that drive gold," it adds, noting that gold has
resumed its long-term uptrend in the last two months following a correction in
September. Spot gold is trading at $1,747.10 a troy ounce, down $2.30 from its
previous settlement but up 7.6% since the start of
October
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