The 'Quantitative Easing" plan revealed by the FOMC Wednesday 11/3
has certainly given investors the confidence to buy Gold and Silver
as a "safer haven" to protect their wealth.
Noteworthy News This Week.......
FOMC MEETING.....
The Fed plans to expand asset purchases by $600 billion by
the end of June 2011....Which probably means the present
benchmark interest rates will remain unchanged....
On Thursday (After the Fomc news was deciphered)
Another strong rebound from the precious metals Thursday
as traders view the Quantitative easing through June 2011
as sign the U.S Dollar will remain under siege and it is probably
also an indication that the benchmark interest rates will remain low.
This does not mean there will not be positive U.S Dollar news in the
future it simply means that the news was viewed as bullish precious
metals for the short term.
The gold market also used the poor economic data on Thrusday to
help fuel incredible rally. The initial Jobless Claims rose
20,000 to 457,000 from last week and the U.S Productivity rose by 1.9%
in the third quarter. Both economic numbers were higher than projections.
Despite some very strong UNEMPLOYMENT data on Friday
(151,000 more jobs than forecasted) the global investor was still
using the FOMC "quantitative easing policy" as their guide to buy Gold....
.
The "BARGAIN HUNTING BUYING" kept the gold buoyant and helped to entice global
investors into the market as the world watched the resiliency of Gold.....
The Wedding season in India continues through December.....
MY COUNTS FOR 11/8....DECEMBER GOLD
RESISTANCE # 2.............$1412.00(MCX Rs 20075)
RESISTANCE # 1.............$1403.00(MCX Rs 20026)
PIVOT .............................$1388.00(MCX Rs 19962)
SUPPORT # 1...................$1378.00(MCX Rs 19918)
SUPPORT # 2...................$1360.00(MCX Rs 19861)
RECOMMENDATION : Buy near and above 19900 with SL 19848
RAHUL KUMAR
GOLD ANALYSIST
Comments me : bestech30@gmail.com
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