By: Chintan Karnani, Insignia Consultants
-- Posted Friday, 14 December 2012 | | Source: GoldSeek.com
· Technically gold and silver are in a neutral zone.
· Today’s close will set the direction for next week.
General market conditions
The firmness in gold prices is an indication that bears are having a hard time. Gold did not fall like a pack of cards and the fact it managed to trade over $1685 could result in bears giving up their fight if gold is able to trade over $1685 today. Silver fell but is volatile. I am not going to get gung ho over the bear trend in gold and silver and would rather wait for gold to fall below $1685 and silver to remain below $3220 to press the sell button. Base metals will be volatile. The inability of gold to fall below $1685 is also attributed to higher investment demand and jewelry demand.
The Japanese elections on Sunday could be the key for the yen. A stable government could result in gains for the yen against the US dollar. The next elections will be held in July 2013. The yen will be very volatile in 2013. We prefer to short the yen against the US dollar with a price target of 91.00 by April 2013.
Market focus will be on the US fiscal cliff issue apart from the economy.
COMEX TECHNICAL VIEW
COMEX SILVER MARCH 2013 – current price $3269.00
Bullish over $3269 with $3303-3371 as price target
Bearish below $3220 with $3178-$3130 as price target
Neutral Zone between: $3220-$3269
Break point: $3269
- Yesterday silver managed to recover after fall to $3225 and now needs to trade over $3225 to target $3365
- Another wave of selling will be there below $3225 only.
Disclaimer: Any opinions as to the commentary, market information, and future direction of prices of specific currencies, metals and commodities reflect the views of the individual analyst, In no event shall Insignia Consultants or its employees have any liability for any losses incurred in connection with any decision made, action or inaction taken by any party in reliance upon the information provided in this material; or in any delays, inaccuracies, errors in, or omissions of Information. Nothing in this article is, or should be construed as, investment advice. Prepared by Chintan Karnani