WEEKLY GOLD TREND FOR WEEK STARTING OCT 22nd

GOLD SETTLE $ 1724.70


" So far, the correction in gold is holding well above the 50% retracement level, a general indication of a
bullish condition, and anything is always subject to change.  For as long as gold remains in a trading range,
little can be said that is of consequence until a breakout develops, either way.  All that will be said is the
bullish nature of the chart has not changed'

Since the last developments on daily basis were to prevent this long-signal, on the basis of the seasonality it is looking very much better for November 2012. Each November close above 1755 will be a new strong buy signal for gold on monthly base:

Zooming into the chart we can better recognize why a touch with  at 1686 for October 2012 might be the strongest attraction point of the actual October correction on weekly and daily basis.  Now the correction may end any time because the support function  might start off at any moment.

Even seen through the darkest bearish glasses, the actual correction is but a matter of an extended test of $ 1680-$ 1700. In case of a significant close below the 1715 mark this test indeed may go down to the strongest  support the 1686 – but that’s where it’s supposed to end.

I.e. As per my view..... neither in October nor in November gold is supposed to close significantly below 1680. From the 1680 environment gold shall turn up again breaking the 1755 on closing price basis upwards significantly and subsequently heading for the next existing up targets $ 1815. And that’s the region of the all-time highs – spring 2013!

Note : Last week Our client (s) short some Gold and Silver at the point of $ 1755 and $ 32.80.......buts thats not suppose to close your position which bought at higher level.   

RECOMMENDATION : WAIT FOR FOMC MEETING THIS WEEK

TRADE LEVEL

RESISTENCE # 2....................... $ 1755

RESISTENCE # 1....................... $ 1740

PIVOT.................................... $ 1730

SUPPORT # 1.........................   $ 1712

SUPPORT # 2........................    $ 1699

Happy Trading

Rahul Kumar

Gold Specialist

Call me : +91 895-8173-410

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GOLD TREND FOR WEEK STARTING OCT 15TH

GOLD SETTLE $ 1759.70

TECHNICAL

Altogether as many as five times, gold closed above the 1772  that started from the all-time high. That fact should technically keep this angle on weekly closing base. Technically it will take a weekly close below 1745 to break this angle pretty surely downwards, considering the lost motion. Target in that case would be the 1725 area .


For THE week, narrowly beneath the 1751 there is another important weekly time and price magnet that is formed by the strong support  at 1740. The 1740 should be expected for  week if a daily close below 1748 is produced. But it’s also possible that just a short intraday dip to the 1740 will happen –

In summary at 1751 the area of the strongest weekly and monthly supports begins. At 1751 and at 1740 strong turns or the end of the countertrend respectively are expected to happen for the week.

FUNDAMENTAL

We are literally witnessing a war between the physical buyers (Eastern central banks), and the paper manipulators (commercials or bullion banks), and that is why there is such a fierce battle being waged in gold between $1,735 and $1,800. The commercials are massively short gold at the moment, and each time they try attempt to drive the price of gold lower, there is a solid wall of physical buying they are running into.

This is one of those moments in the gold market where there is a distinct possibility that we will see a commercial signal failure.  A commercial signal failure is an extremely rare event, but we could well be setting up for just such an occurrence right now.

This is a battle between the sellers of paper-gold and the buyers of physical gold.  We know the paper-sellers are there because Comex open interest has exploded over the past several weeks.

The shorts will need to buy back at whatever price they can to limit their losses.  It is this panic buying that will launch the precious metals like a rocket when $1800 and $35 are finally hurdled.  We have seen battles like this one many times over the past  years.  Some of these battles have been fought even more fiercely than the current one, which means it could take a while longer to get the breakouts above $1800 and $35.

But TRADERS/INVESTOR  have to remember that in the end, the physical buyers always win as evidenced by the fact that gold has risen 11 years in a row, and this year looks like it will be number 12.  The reason of course is that there is far more paper-gold in existence than actual physical gold, which means only one thing:  We could soon be seeing a massive short squeeze in gold and silver........BE READY A BLAST IN PRICE

RECOMMENDATION : BUY ON DIP

TRADE LEVEL

RESISTENCE #2................................ $ 1784

RESISTENCE #1................................ $ 1772

PIVOT................................................ $ 1761

SUPPORT #1..................................... $ 1749

SUPPORT #2..................................... $ 1740

Happy Trading

Rahul Kumar

Gold Specialist

Call me for yr position : +91 895-8173-410

WEEKLY GOLD TREND (Week starting from Oct 8th)

GOLD SETTLE $ 1780.80

  New highs for this market may be established with both the fundamentals and the technicals

FUNDAMENTAL

Last week, the December Gold traded up to $1798.10 and now it is absolutely crucial for it to advance through the $1800.00 mark!  Friday, Gold had reached $1798.10 giving back the hope to the Gold bugs.

A better than expected Unemployment numbers (7.8%) force down the gold till $ 1774.50  


 Gold is now postured to climb higher than before.  The fundamental elements are all there.  QE3 represented an unlimited amount of money injected into the economy.    Draghi just needs the request of an indebted country to initiate his bond-buying program which again brings up the price of Gold typically.  Seasonal factors may also help the case for Gold as the ETF funds may flow into the Gold market.  Gold combined open interest increased 13.3 % in September and the commercials accounted for 50.7 %.  Physical Gold out of Asia has been weak due to the holiday, but the Chinese should come back into the market again next week.  India has remained weak.  With the added fear of inflation and turmoil globally, it would seem like the perfect time for Gold to make its move!  With this in mind, we proceed with due caution!  

TECHNICAL

Prices are testing resistance in the 1794.55-1802.80 area marked by the November 2011 and February 2012 swing highs. A break higher exposes 1850.00 and the 1900.00 figure. Initial support stands at a rising trend line set from mid-August, now at 1772.27. A reversal below that targets major trend line resistance-turned-support at 1746.79

TRADE RECOMMENDATION AS PER LAST MONTHLY REPORTS (Please check Oct 01st post)

TRADE LEVEL

RESSITENCE #2........................... $ 1808
RESISTENCE #1........................... $ 1796
PIVOT........................................... $ 1785
SUPPORT #1................................ $ 1770
SUPPORT #2................................ $ 1760


Happy trading

Rahul Kumar
Gold Specialist

Ask about yr positions : +91 895-8173-410