Bullions Trading Above Trend Line and Commodity Trading Tips
Gold Commodity Trading witnessed massive gains on Friday after the Britain was confirmed to move out of the Euro zone. Gold prices wrecked at the highest levels after August 2014 and enjoyed any highest single day gains after September 2013, where it tested the highs of $1358.8/ounce on COMEX St. Louis Fed President Jim Bullard, in a significant shift in his stance for the economy, at this instant says low growth and a very low fed funds rate of just 63 basis points will likely remain here place from side to side 2018. Bullard, overturned earlier forecasts that looked for growth to pick up and rates to rise, now speaks two percent growth is the most likely predict and that rates will remain low. The New York Fed lowered its forecasts for United States financial growth in the II and III quarters largely due to recent negative data on domestic manufacturing activity. Russia's gold reserves increased to 47.6 million troy ounces as of the initiate of June from 47.5 million ounces a month earlier, as per the central bank officials. The minutes of the BOJ's April 27-28 policy meeting showed that, policymakers consider abroad economies continue to sham downside risks to Japan's economy and prices and a few Bank of Japan embark members estimate the bank was doubtful to achieve stable 2% inflation in the projected threeyear period to 31.03.19, as they revised down their economic outlook. The International Monetary Fund said on Wednesday the United States financial system was "In general in fine outline," with growth set to regain momentum despite an overvalued dollar, but it presaged that too many Americans were plummeting out of the workforce or living in poverty. U.S. home re- sales rose in May to an extra than 9 year high amid low mortgage duty, pointing en route for nonstop housing market potency that should keep the economy on solid ground. Meanwhile in the testimony near the Fed Chairperson, she once again argues that the slowdown in the labor market for the month of May was transitory as well as largely consumer spending remnants strong. She however, agreed that the Fed would adopt a cautious approach on raising the further interest rates International Monetary Fund Managing Director Christine Lagarde said on Wednesday that the Federal set aside should avoid "hasty" interest rate moves and focus on stability in its monetary policy. Hedge funds and money managers lifted their bullish locations in COMEX gold. They supplementary Sixteen Thousand Thirty Six contracts to their grid long position, bringing it to 256,898 contracts, the highest since records became available in 2006. This was the III straight weekly augment as bullion prices rose to the highest in nearly two years We have seen a huge rush towards gold prices from investors on the back of safe haven buying after the Brexit was confirmed. In the upcoming sessions, the markets will now initiate to make a modification as more opinions and repercussions of Brexit will hit the streets, which can keep the prices volatile. However, till the time uncertainty is going to remain gold prices are likely to get benefitted. Also the massive swings in the global forex markets are likely to keep inventors motivated towards the reserve currency i.e. gold. During the week in addition to the comments from British finance minister and the ECB president on Monday and Tuesday, it will be the speech by the Fed chairwomen on Wednesday that will keep the markets on toes. Janet Yellen previously expressed her concerns on Brexit happening, and now it will be
interesting to see how she sees the global economy impacted post the event, especially her take on the interest rates will be eyed upon. On the speculative front, the net longs have already hit an all time high pointing towards a strong bullish expectations .For the week we recommend buying gold from lower levels MCX Gold Aug Delivery contract opened the week at Rs.30550 and made a low of Rs.29852 but prices could not sustained at lower levels at end of the week rallied sharply higher, finally settled at Rs.31401 levels. Short term exponential moving averages 9 and 21 periods are supporting for bullish trend. RSI-14 approaching over bought zone in weekly chart, which may limit rally for coming weeks. MACD is in positive territory which holds bullish view for coming weeks. Prices are currently trading above major trend line resistance, as long as price trade above trend line trend remains bullish Silver Commodity Trading prices ended higher in the previous week, with the gains in COMEX were seen at 1.43 percent while on the MCX the prices outperformed at end with gains of 2.50 %. Huge built up was seen in the volumes at both the bourses. Data from Japan during the week showed, the adjusted trade balance came in at Yen 270 billion, wider than a surplus of Yen 130 billion expected for May, while exports dropped 11.3%, more than the 10.4% year-on-year fall seen and imports came in as expected, down 13.8% year-on-year. The overall trade balance came in at a drop of Yen 41 billion, the first deficit in four months. The number of Americans filing for unemployment benefits fell last week to near a 43-year low, suggesting labor market resilience even though hiring slowed sharply in May. On Friday, the global equities market plunged on fears of slower global economic growth after the Brexit, with the Dow slipping lower by 4.50%. The movement in the currency markets was even more volatile where the GBP slipped the most in 30 years plunging 8.90 %. On the housing data released, U.S. home resale rose in May to a more than nine-year high amid low mortgage rates, showing the housing market is still the bright spot in the US economy In silver, the hedge funds and money managers added 14,220 lots to their net long position, increasing it to 75,155 contracts, also the highest since records became available Silver July futures at MCX platform this week prices are trading in green extending last three weeks bullish trend. RSI-14 and Short term exponential moving averages 9 and 21 periods are supporting for bullish trend in weekly chart. MACD is in positive territory in weekly chart which holds bullish trend for coming weeks Commodity Trading Tips Buy Gold Mcx Aug on Dips at 30900 sl 30400 Tgt 32300 Buy Silver Mcx Jul On Dips at 41650 sl 40500 Tgt 43800