As I expect The precious metals tumbled early after reports that
The Central Bank of China did indeed raise the banks' reserve
.50 basis points on 10th Dec.
The rule of thumb is whenever a Central bank raises rates
GOLD and SILVER will tumble (at least temporarily) and when
Central banks LOWER rates GOLD and SILVER will rally.
However, a late session rally brought Gold from the $1372.70 levelGOLD and SILVER will tumble (at least temporarily) and when
Central banks LOWER rates GOLD and SILVER will rally.
back to close at $1384.90....Which may indicate some "bargain
hunting buying".
But you always remember one thing that,during inflationary times
gold and silver historically retain value better than most commodities...
China raises rates and pushes the metals lower.... This also gives
an opportunity to buy Gold and Silver at lower prices.
On last Thursday France and Germany have joined forces
in refusing to add to 4440 Billion Euro rescue fund....putting an
added strain on already high tension atmosphere.
European union leaders are due to summit next week.
The X leave is comming soon and gold still trade belwo $ 1400
so be cautious with the long position with strict stop loss.
“The push didn’t bring in any momentum (buyers) and the volume
wasn’t there. That was a big indicator gold was not going to hold
its levels. We drifted back to where we ought to be,” said Frank
Lesh, futures analyst at FuturePath Trading.
Lesh said barring any unforeseen circumstances, he expects gold
will likely hold in a fairly narrow $50 trading range between $1,350
and $1,400 between now and the rest of 2010.
Looking at technical charts, gold has strong support at $1,375,
said Ralph Preston, senior market analyst with Heritage West
Financial. Preston also thinks that gold will need some sort of new
catalyst to push it out of its current range, something beyond what’s
in the news now.
He said it looks as if gold might be trying to
build another head-and-shoulders pattern on daily technical charts,
with the left shoulder the highs from November and the head the high
of this week. If gold trades in a sideways pattern, that could be a sign
this chart pattern is forming. “We have to let the numbers direct us,”
he said.If gold either closes below $1,375 or trades under $1,350,
it could take a trip down to $1,315, Preston said. On the upside, if gold
can close over $1,410 it could try to test the recent high. A close
over $1,426 could mean a test of $1,460. However, Preston said that
a rally is less likely because of the lack of fresh news and the fact that
it is the end of the year, which can also mean less trading volume.
The markets next week will likely focus on two items: what China
might say in regards to its monetary policy this weekend and debate
over tax levels in the U.S.
MY COUNTS FOR 13/12 FEB GOLD
RESISTANCE # 2............$1404.00(MCX Rs 20787)
RESISTANCE # 1............$1395.00(MCX Rs 20654)
PIVOT..............................$1383.00(MCX Rs 20507)
SUPPORT # 1..................$1373.00(MCX Rs 20364)
SUPPORT # 2..................$1361.00(MCX Rs 20220)
RECOMMENDATION : MARKET SHOULD BE IN SIDEWAY PATTERN
SO TRADE BETWEEN SUPPORT AND RESISTENCE LEVEL
(BUY ABOVE SUPPORT AND SELL BELOW RESISTENCE)
OR TO GET EXACT INTRADAY TRADING LEVEL CONTACT ME
RAHUL KUMAR
GOLD Analysist
Comments me : bestech30@gmail.com
Subscribe me : TRADETOPROFIT
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