Jan 31 2007 9:26AM
31st Jan 2007 Bullion Report
| GOLD | | FUNDAMENTALS | | Gold prices steadied early Tuesday in the European futures markets as traders remained reluctant to take position ahead of US Fed rate decision. In London spot market gold was offered at $644.80 per troy ounce, up $1.60. The yen hit a four-year low against the US dollar intensifying fears that the rising level of currency-based "carry trades" by hedge fund investors could jolt markets if these positions were suddenly unwound. Euro-dollar was trapped in a trading range and continues to be in a downtrend from the early December high. Comex gold warehouse stocks were down 31,871 ounce to 7,431,355 ounces. | TUG-OF-WAR: Bulls vs. Bears | | No. | Pressure Point | Favours | | 1. | Gold gains ahead of US Fed rate decision. | Bulls | | 2. | US dollar strengthens against euro, yen. | Bears | | 3. | Crude on a recovery path. | Bulls | | 4. | Comex warehouse stocks down 31,871 ounce. | Bulls | | |
EVENT WATCH: (Monday)
| | Euro zone Dec unemployment , Jan preliminary HICP, Jan business climate indicator | | US FOMC meeting (ends), rate announcement, Q4 GDP, employment cost index, Jan Chicago Purchasing Managers Index, Dec construction spending | | | | | | TECHNICALS | | | Gold seems in indecision at higher levels. The prices closed below 9-days EMA, which shows short term weakness in the prices. MACD has entered in positive territory, which is a positive sign. However, stochastic is negative in neutral region. Prices are likely to see some volatility. | | | | | TRADE RECOMMENDATION | | | | Contract | Call | Entry | T1 | T2 | SL | S2 | S1 | PCP | R1 | R2 | | MCX-Feb | Buy | > 9180 | 9245 | 9265 | 9150 | 9120 | 9150 | 9195 | 9266 | 9310 | |
| | | SILVER | | FUNDAMENTALS | | Silver prices turned higher in the early European trade supported by the positive sentiments in market infused by stronger gold. In London spot market silver was offered at $13.32 per troy ounce, up 14 cents. Copper futures fell on LME due to the rising inventory levels and concerns of slowdown in global demand. Comex warehouse stock fell 280,079 ounces to 113,958,020 ounces. | TUG-OF-WAR: Bulls vs. Bears | | No. | Pressure Point | Favours | | 1. | Silver firms up backed by positive sentiments. | Bulls | | 2. | Copper inventory gains in LME. | Bears | | 3. | Comex warehouse stocks down 280,079 ounces. | Bulls | | |
EVENT WATCH:
| | Events covered under gold section | | | | | | TECHNICALS | | | Silver is also showing indecision at higher levels, however, the close above EMAs suggests that the uptrend is intact. Stochastic have made bearish crossover in overbought levels. MACD has just entered in the positive zone, which is a positive sign. The prices are likely to see some volatility with positive bias. | | | | | TRADE RECOMMENDATION | | | | Contract | Call | Entry | T1 | T2 | SL | S2 | S1 | PCP | R1 | R2 | | MCX-Mar | Buy | > 19670 | 19850 | 19967 | 19570 | 19310 | 19466 | 19732 | 19911 | 20153 | | | | | | DISCLAIMER
This report is prepared exclusively for Reliance Commodities by Indian Rural Market Products Pvt Ltd (IRMPL). The information and opinions contained in the document have been compiled from sources believed to be reliable. IRMPL does not warrant its accuracy, completeness and correctness. Use of data and information contained in this report is at your own risk. This document is not, and should not be construed as, an offer to sell or solicitation to buy any commodities. IRMPL and its affiliates and/or their officers, directors and employees may have positions in any commodities mentioned in this document (or in any related investment) and may from time to time add to or dispose of any such commodities (or investment).
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