Gold was mostly bullish in yesterday’s trade while at the COMEX’s closing; it ended marginally lower at $1352.20. We have seen prices moving in the range of $1346 to $1361.48. In other words, the market was also calm ahead of the two day Fed policy meeting, which is likely to end on Wednesday. Although economic data releases are hurting the market temporarily, we believe that gold investors are keenly awaiting the result and the Fed’s decision on its quantitative easing programme.
We believe that the Fed may continue to keep the QE programme on, at least until the beginning of 2014. Since the market is a bit jittery about the Fed’s decision, we are seeing a consolidation phase in most of the assets. Gold too is trading in a very confined range. As of now, we hold a very mixed view on gold unless there is fresh physical demand coming in from India ahead of the festive season. At the local market, gold prices for 10 grams settled at Rs 30,758, a minor change from its previous close.
At present, gold is trading at $1352, unchanged from its previous close. We believe that the market may either continue to remain steady or there might be a slight correction in prices ahead of the Fed meeting. The dollar index up-ticked slightly and at present is trading at $79.356 and the euro has also declined a bit, which might cause a correction in gold prices during the day.
Coming to the economic data, we have a few data from the US, which may have a mixed outlook on the economy and the dollar. Its impact should be felt on gold. In this regard, we believe that gold might recover during the US session. However, looking at the market, we believe that gold may remain steady in today’s trade. Therefore, we recommend trading only on an intraday basis for the day.
Silver’s December futures prices traded marginally down in the previous trading session and ended the day at $22.53, down by 10 cents from the previous close. As discussed in our gold report, the market was mostly sideways and so, a similar impact was noticed on silver too. However, silver traded marginally down vis-à-vis gold as it took a bearish approach from the base metals and negative equity markets in the US. Therefore, silver prices at the local market ended at Rs 49,561, down by Rs 140 from the previous close.
This morning, silver is seen trading at $22.53, mostly unchanged from the previous close. We believe that as the day progresses, silver might remain subdued while the bearishness may remain intact. As of now, all the Asian markets except China are negative, along with negative base metals trend at the LME, which should pull silver prices lower in today’s trading session. As discussed in our global market analysis section, there are a number of data expected today from the UK and US and, they may have a negative impact on silver.
Therefore, we believe that silver might remain lower for the day. At the domestic front, the rupee is trading down against the dollar and because of which, Indian silver prices might not fall in comparison to the COMEX silver price. Also, the two day FOMC meet is likely to keep the market cautious and because of which the market may remain steady.
Overall, we portray a bearish approach on silver for the day, while we recommend selling on an intraday basis. Also, we recommend taking a ratio strategy wherein we recommend selling silver and buying gold for the day.
BULLION:
Gold Projected High Range at 30912-31271
Gold Projected Low Range at 31056-30697
Gold Mcx Dec Resistance on Upside at 31067-31475-31883
Gold Mcx Dec Support on Low side at 30348-30037-29629
Gold Trend Deciding Point at 30756
Silver Projected High Range at 49784-50058
Silver Projected Low Range at 49902-49628
Silver Mcx Dec Resistance on Upside at 49901-50214-50528
Silver Mcx Dec Support on Low side at 49353-49118-48805
Silver Trend Deciding Point at 49666
BASE METALS:
Copper Projected High Range at 448-450
Copper Projected Low Range at 449-447
Copper Mcx Nov Resistance on Upside at 448-451-453
Copper Mcx Nov Support on Low side at 445-443-440
Copper Trend Deciding Point at 447
Nickle Projected High Range at 896-902
Nickle Projected Low Range at 899-894
Nickel Mcx Oct Resistance on Upside at 899-905-912
Nickel Mcx Oct Support on Low side at 887-882-876
Nickel Trend Deciding Point at 894
ENERGY:
Crude Projected High Range at 6098-6141
Crude Projected Low Range at 6074-6031
Crude Mcx Oct Resistance on Upside at 6124-6159-6194
Crude Mcx Oct Support on Low side at 6038-5987-5952
Crude Trend Deciding Point at 6073
Natural Gas Projected High Range at 224-228
Natural Gas Projected Low Range at 226-222
Natural Gas Mcx Nov Resistance on Upside at 225-230-235
Natural Gas Mcx Nov Support on Low side at 217-213-208
Natural Gas Trend Deciding Point at 222
Mentha oil Projected High Range at 845-849
Mentha oil Projected Low Range at 849-845
Mentha oil Mcx Oct Resistance on Upside at 846-851-856
Mentha oil Mcx Oct Support on Low side at 839-836-831
Mentha oil Trend Deciding Point at 844
TODAY STOCK MARKET TIPS
BUY CRUDE OIL MCX NOV ABOVE 6105 SL 6065 TGT 6150
BUY LEAD MCX OCT NEAR 135 SL 134 TGT 136
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