MARKET:People/Power/Pressure

GOLD has broken its major sup of $1500/1522 area, made a low of $1476 in GLOBEX late electronic trading and silver too broken its major sup of $26/26.3 area and made a low of $25.725 in late electronic trading. Chart got damaged and technical picture turns negative.

A negative spiral can expect for midterm.  Next sup level is coming at $1436 (Comex gold futures generic and spot gold), which is Fib 38% retracement level from 2008 low to 2012 high and even MA 200 week, another sup is @ $1418/22. So this sup area we can watch whereas strong res $1530 and 1550.
next imp sup area is coming $1288-$1302.

But won’t be surprise if we see a bear trap to form nearby.

Friday, 12^th April ’13 gold pressured by Mr. Draghi comment reg Cyprus gold reserve sale whereas EU finance ministers extend Irish, Portuguese loan repayments 7 more years, easing the burden on their economy and approves Cyprus bailout. on Wednesday there was market talk of Cyprus gold sell but on Thursday Cyprus finance minister ignored any discussion reg this.

This was a panic selling as it did so many times in recent past, this time fear is, if the pressure comes on  other indebted EU countries which may on Cyprus and all come to sale their gold reserve. Gold and silver too slips by hitting huge sell stops.

We all can remember some Famous names suggesting to sell gold as b’coz its useless (in their opinion) and to buy stocks its to move new area, somehow they able to make themselves right supported by less participants and volume irrespective the reason on the ground as its still gloomy for US, very poor for EU, China with much doubt, India is also not well including some other countries.

On this day although all other indices globally was down but US indices covered their day loss and closed near to flat (irrespective of US retail sales and  consumer sentiment  was disappointed) , may pressure to liquidate commodities position to meet up their margin.

US Fed divided for continuing or end QE program and when. Whenever comment is coming off an end sooner than later, pressure is coming on precious, but is it not due to QE, equity was gained much irrespective of econ condition?

In last speech Fed Mr. Bernanke didn’t hint an end sooner.

 What about the other countries? Its ongoing and in Japan its unlimited now.

* Soaring inventory or base metal indicates less demand which mainly for industrial use.

*China importing huge quantity of gold recently it was 72 Mt, and from nov’12 to feb’13 it is 272tons in just four months (data source Kitco).
*Globally most of the central banks increasing their holding to protect their currency and all in a currency war.

GOLD is really precious as because of its nature and human psychology and culture, its always against any type of risk as inflation or deflation, economical or geopolitical even against fiat currency with has industrial demand too. Silver too categorically same in nature with wide industrial use.

CROSSROAD (?)

USD boosted against majors even after spending cut.

DOW and S&P covered sharply from low on Friday and settled near the day high and specially DOW spot at 14089.66, just few point lower of all time high settlement of 14093.08.

Possibly we can see some interesting movement in coming days as major indices, precious and currencies are in crossroad.

GOLD & SILVER:

GOLD was facing selling pressure before last week, slips to $1554.6, and settled at $1575.7 near 2012 lowest close of $1564.5. It is below the secondary bearish channel but for last two weeks it was holding sideways, holding above a critical and major sup area of $1500-$1522.

Open interest reduced last week.

SILVER movement alike gold, here within a secondary bearish channel and on week formed a dozi at  channel sup, although taken out a long trend line sup @30$ area but holding above  strong sup area holding from 2011 is 26$, which is 50% retracement of 1995-2001 low and 2011 high which was a retest of record high.

Seems a half round above $26 has done on weekly settlement basis, to watch if can complete.

Any convincing breakout of critical and major sup areas for gold below $1500/1530 and silver $26, can be damaging for midterm.

ECB, BoE , BoJ rate decisions, China reports and US unemployment rate, nonfarm including some other economical report will bring volatility and direction next week after US declares of spending cut.

Major indices DOW and S&P on record high area while gold and silver holding on major sup for retracement hits all time high. 

(chart 3: long term chart on DOW spot vs gold spot and S&P spot vs gold spot)

Growth, risk, investment and hedge. Currency, Commodity, Indices(equity) .....  choice is ones own. 

(chart 4: gold spot and DOW spot vs USD index)

NB: market is typically volatile, but market do the logical only. foreseeing the unforseen realy need to maintain stop always as it carries risk. 

COPPER to become semi-precious(?)

Uncertainty is rising and so volatility and volatility is a matter of concern. Copper outlook is bullish in long term while now short to midterm became positive.  

On daily picture copper has formed a double rounded bottom holding support area of 328c/lb and given a breakout of 355c/lb area and settled 364c/lb. and nearby target area seems 379/380c/lb.

On weekly another positive indication we are getting as taken out a trend resistance line and given a positive settlement which may hinting to get copper at psychological mark of $4/lb.

Everybody is talking about QE, it is almost certain more QE globally may today or tomorrow but if no QE anyway, then what (?), do you think all the metals and precious metals will fall and will be very cheap (?)… may there will be a sharp and sudden reaction pull prices down which will be very much temporary, investment demand and supply disruption and supply worry will push prices higher even for a new record.

Copper is tending to become semi-precious, the oldest metal of human generation.

NB: This for sharing thought and interest, not a trade recommendation. 

GOLD: failure or trics?

GOLD: last day of this week end with gains and closed just below near term res of $1670/72 and weekly formation is also good. Monday, a flat to +ve open and steadiness ‘ll hint some higher areas.



(**spot gold daily chart)

On last 29^th feb ’12, it fails to breach $1800 area,  sharply fallen to $1688 and damaged for near term, a failure. So many times it's showing failure in last  few months but not failed actually as previous.

(**spot gold weekly chart)

Holding long term trend sup and near term trend sup too. We've to keep eyes open as can make bear trap with any news or event as general sentiment also damaging after longs getting hurt so many times.

 Movement, area of movement and background suggesting me accumulation is going on and not changing my idea till $1500 is intact (due to many reason it’s a big sup area for gold and psychological too).

RECENT HISTORY: While went to the past years movement, in 2008 after given downside breakout it holds and ultimately made a bear trap (can see in my this blog on dt. 24^th oct’08, 15^th nov’08, 22^nd nov’08). (Again I’m grateful to my seniors, suggested me to write this blog).

(**long term weekly spot gold chart ) 

LONG TERM EXPECTATION FOR GOLD:

Till $15k is intact, seeing only buying in dips is better option, record high will be the target above $1800-$1840 and new record probably on the cards. Revising my long term target of $2300 to $2670, followed by $2300, $2100 and $2k.

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