Thursday, October 19, 2006

Gold and Silver in "NO TRADE ZONE"..........

Gold and Silver have yet a long way to go before we can come to a definite conclusion as to their destinations. Punters as we may call the big players are making hay while the investors are at a loss of thought as they are not able to make up their minds as to what to do? A big blog has ben created in their minds and unstability prevails. Gold looks at touching $620-$630 the moment it rises above $600 and the moment it breaks $586 it looks towards $540-550. So what to do??
Same is the case with Silver albeit with a more positive outlook.

This is just the right scenario the punters wanted. Now we have started hearing levells of $480-$500 in the market where we were earlier getting sounds of $750-$800. This is what the punters wanted. The markets are set for a major reversall but?? after a quick slide which should be a major one to say $10.47 for Silver and $ 540.00 for Gold.

So stay put and do not hurry or overreact to any push or pull. Crude also is pushing and pulling gold and silver in both directions but it is definitely destined ro $55.00 at which point it should consolidate and rise.

Look positively and don't hurry.


Wednesday, October 11, 2006

Humpty Dumpty set for a great fall.................

There is nothing new to write about Gold and Silver . Everything is the same as last week. Gold has been unable to break $680.70 spot despite a number of tries in the past week. This is signalling a significant bearish divergence in the near term this time round Gold should fall below $570.00 spot and test $551.40 spot and maybe to low $500.00. On the upside we could see $593.00 spot which should again be a good levell to go short with stops above $600.00.Crude oiul has also closed below $58 ahead of US inventories which could again trigger something in Gold.

Silver has nothing new to add this wek expect that it is following Gold. Whenever you want to buy anything buy silver and whenever you want to sell anything sell Gold as Silver will rise faster and fall slower as compared to Gold. Buy on majort dips around $10.00.

Happy trading.

Wednesday, October 04, 2006

Gold and Silver crumble............

Gold and Silver had to come down like this and there is still more to come. The big question is where do we se Gold and Silver in the near to medium term? On what basis do we give our verdict: Fundamental; Technical; Geo Political; or even Astrological/Astronomical ? The best answer is to combine all these forces and see what results we get in general for the metal market as a whole.

Gold has broken key technicals and is bound further south to maybe0 $520.00 if we see a close again below $570.00 spot today. Fundamentally also Gold is not that strong. We shall not say it is weak but not that strong either because right now we see robust demand from India ; Middleeast and even South East asia but this is stocking up as prices are considered too low here and they expect them to go up from here but what if we see a further slide. Then I think the demand will totally come down. As per chinese astrology also this is a year of water and metals tend to sink in water. Geo political situations should not deliver any spike in the near term at least till the U.S. elections.Above all this Gold is a measure of the US economy and they have to project a stable U.S. state and for that Gold has to be down.

Silver on the other had is fundamentally very strong and technically also not that weak either. But if Gold falls further we could see Silver to a low of $9.40-$9.50 in the near term. All in all it should follow Gold to a major extent. We also have unconfirmed reports of certain Hedge Funds suffering losses on silver and the reports if true could bring down silver drastically.

The most important factor for the bearishness is the mind game the bigger players are playing with the small individual players/investors/speculators. The retail investor is still long and has still not squared their positions coz they see Gold to a maximum low of $550.00 now and therein lies the catch. Once it breaks those levells sharply the retail investor shll exit and maybe even sell extra expecting major losses from there. Again a Death Knell for them. This is a trap very carefully laid out by the sharks of this trade for the jelly fish. So watch your frien in the bullion trade is doing.

Tip: sell on extreme spikes.