I've left off the link, but the consensus in India is that gold has bottomed, thus spawning the massive demand we are seeing today:
Physical demand of gold in India is so strong that traders ran out of stocks for the past two days. Jewelers are buying for the upcoming month long festive season from tomorrow. The general consensus among traders and retail investors in India is that gold has bottomed out and that it will start to rise from tomorrow. A client of mine in New Delhi usually sells on average 45kgs to 50kgs of gold daily. For the past two days he has been selling 400kgs to 450kgs of gold and could sell more. The same is with the traders in Mumbai, Calcutta and Chennai. Physical gold demand in India is huge as retail investors knows that higher gold prices are here to stay in the long term. There are less sellers in India even in the MCX and NCDEX future market. There is also a general view that after the “Shradh” paksha, gold and silver will rise. This ends today. Retail investors had postponed their demand due the inauspicious shradh paksha. We expect huge buying in spot as well as future market in gold and silver in India from tomorrow.
The US dollar is also weaker against the major currencies after the economic numbers suggest that a slowdown is in the offing. Crude oil prices have managed to hold $60 a barrel. The International Energy Agency, forecast non-Opec supply to increase by 1.8m b/d next year, on top of the 810,000 b/d increase it forecasts this year. While non-Opec supply growth has tended to disappoint in most years of this decade, 2007 marks the first time that significant disappointments have commenced before the year has even started. On US gasoline prices it said that they will we ever see a national average retail gasoline price under $2 per gallon again? The EIA doesn’t see the average price falling below the $2 per gallon level unless crude oil prices continue to decline sharply,” the EIA said. Crude oil has managed to hold $60 a barrel and as long as $60 holds on closing basis the downside will be limited.
If spot gold holds $570 for the rest of the month we may have bottomed out in the short term. Central bank sales will be over after the middle of next week. Gold and silver should break out of the recent trading range and edge higher subject to technical breakouts.
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GOLD -- DECEMBER FUTURE
Gold needs to break $597.50 to target $614.50 and $622.50. On the lower side $586.50 is the initial support with $578.80 and $566.60 as the key short term support levels.
SILVER -- DECEMBER FUTURE
Silver needs to break $1152 for $1220. On the lower side $1106 is the initial support with $1062 as the key short term support.
Happy Profitable Trading & A Great Weekend
Woo-hoo! Technical analysis. LOL
What are the chicken entrails telling you?
Oh, I'd much rather sing my happy little song...IPO, oh IPO, here an IPO, there an IPO, happy is the day, to come, of my IPO.....la, la, laaaaaaaaaaaaa, la, la, la.