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
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
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