GOLD REVIEW

GOLD REVIEW

GOLD REVIEW

by Pradeep Chandrasekan

(the author is the Founder and CEO of Finmark Trainers and can be reached at pc@finmark.co.in)


 

Review: August-2015

 Gold Review

During the month two major political / economic solutions were sighted.  The first was in the finding an acceptable solution to the European Troika and to Greece to resolve the Greek debt crisis.  The second was the break-through made in the nuclear deal with Iran which is expected to go a long way in easing of political tensions in the Middle East and pave the way for Iranian Crude to re-enter the world market. A combination of these two factors led to the strengthening of the USD against major currencies and led to the unwinding of long positions in Gold.

Chart Review

1a

Gold slipped into the hands of the bears and suffered huge losses.  Following the break of the support at the $1200, fresh short positions were built which has further weakened Gold.  The sell-off in Gold also led to the break of the November low at the $ 1130 level.  In the coming weeks, further weakness can be expected in Gold and consequently, it is advisable not to hold long positions in Gold.

 

DOMESTIC GOLD PRICE MOVEMENT

Gold suffered reverses during the entire month and entered a new bear phase.  The support from the March low around the Rs. 25,600 mark has been broken and will now act as a resistance.  Unlike the international prices, domestic prices are still holding above the November low.  The November low is around the Rs.25,200 mark and this is the only significant nearby support.  Long positions in Gold are best avoided at this stage.

1b

 

GBP – USD                                                                                                                                        

In the early part of the period under review, the USD gained against the GBP to a high of 1.5323 before a recovery in the GBP saw the USD heading towards the 1.57 mark.  The 1.5420 level is the crucial level to be watching in the coming days and this will decide the direction of the currency.  The 1.5924 and the 1.5323 are other level to watch on the up and downsides respectively.


 

 


Review: July-2015

 Gold Review

The debt crisis in Greece continued to hog the lime-light with increasing concerns that Greece would default and exit the Euro zone.  The emergency meeting of the European Union in Brussels is seeking to find a solution to the deadlock between the Tspiras Government in Greece and its international creditors.  There is also increasing fear of a run on banks in Greece.

Chart Review

Gold trended sideways during the month and moved in a narrow range.  The $1200 level continues to be the level to watch in the near term.  Should Gold break above this level, investors should look to buy in into Gold.  Gold will slip into the hands of the bears only if it were to break below the $1160 level this month. The targets for Gold at the $1247 and $1299 continue to hold and they will act as resistances if the $1200 mark is broken.

 

 

GoldReview-07-15.1

GoldReview-07-15.1

DOMESTIC GOLD PRICE MOVEMENT

The domestic prices followed the international cues and trended sideways during the month.  The undertone in the metal is bullish.  However, the prices have marginally slipped below the crucial level of Rs.27200.  Fresh buying opportunities will arise only if the prices break above this level.

GBP – USD                                                                                                                                        

The GBP continued to strengthen and is heading towards the 1.60 level.  In the near term, the support for the GBP is around the 1.55 level and it is unlikely that this level will be broken.  It would not be advisable to have short positions in GBP at the moment. The intermediate target for the GBP at the 1.61 level continues to hold good.

GoldReview-07-15.2

GoldReview-07-15.2

(the author is the Founder and CEO of Finmark Trainers and can be reached at pc@finmark.co.in)

 


 

 

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