Silver Tips

Silver cracked heavily in the latter half of the week mirroring the weakness in Gold. Silver too eventually ended with a loss of over 3 per cent.

Silver had managed to sustain above the Rs 63,200-support level mentioned last week in the initial part of the week. However, once that was taken off there was no stopping the white metal as it eventually tumbled to the lower end of the target of Rs 61,000-odd level also mentioned last week.

The daily charts indicate that the white metal may get considerable support around Rs 60,800-odd levels - which is the 50-day moving average for the December contract. The corresponding key level for the March futures should be around Rs 62,650.

Break of Rs 62,650 can further weaken the white metal for downside target of sub-Rs 60,000-odd levels.

As per the weekly Fibonacci charts, Silver MCX March futures may face resistance around Rs 64,550-64,925-65,300, while seek support around Rs 62,150-61,780-61,400.

The corresponding key support and resistance level for Silver Micro February futures are as follows. Support at Rs 62,180-61,800-61,440, while resistance around Rs 64,570-64,940-65,315.

Silver Tips

Silver, as expected, logged smart gains in the week under review. The white metal soared over 4 per cent to Rs 63,633. It may be recalled that in the last two weekly outlooks we had given a target of Rs 64,500 to Rs 66,000 for the December Silver futures.

With the expiry nearing, one can at least bet on a target of Rs 64,500 for the Silver December futures in the next week. The momentum oscillators continue to remain positive hence the March futures may log solid gains.

Given the sharp near support levels are at significantly lower levels. One should refer to Rs 62,300 as the first key support on the December futures, below which Silver can slide to Rs 61,000-odd levels.

As per the weekly Fibonacci charts, Silver MCX March futures may face resistance around Rs 66,465-66,800-67,135, while seek support around Rs 64,315-63,985-63,645.

The corresponding key support and resistance level for Silver Micro February futures are as follows. Support at Rs 64,345-64,000-63,670, while resistance around Rs 66,500-66,840-67,175.

Silver Tips

Bullion metals ended lower at Comex on Tuesday, 27 November 2012. Gold prices ended lower for second straight day as the dollar headed up and a sort of debt deal was reached at Greece. Upbeat US data also took some shine away.

Gold for December delivery fell $7.3 (0.4%) to settle at $1,742.3 an ounce on the Comex division of the New York Mercantile Exchange on Tuesday.

On Tuesday, December silver fell 16 cents, or 0.5%, to settle at $33.98 an ounce.

In overnight trading, the European stock markets rallied only modestly on news that Euro zone leaders meeting in Brussels agreed late Monday to disburse fresh bailout funds to cash-starved Greece. Most market watchers had reckoned EU leaders would grant new monies to Greece. The world market place showed no significant reaction to the as-expected news on Greece.

A meeting to discuss Greece's finances wrapped up early Tuesday with Greece's institutional lenders reaching a deal to pave the way for Athens to receive almost 44 billion euros (almost $57 billion) of financial aid, while bringing its debt down to a sustainable level. The deal is expected to trigger another aid payment for the debt-struck country.

A heavy slate of U.S. economic data released Tuesday did show generally better-than-expected readings overall, and that put modest upside pressure on the U.S. dollar index, which in turn helped push gold and silver prices to their daily lows.

The dollar index, which weighs the strength of the dollar against a basket of six other currencies, rose by 0.2% on Tuesday. The Euro currency also was initially supported on the Greece news but could not hold those gains as the day wore on.

In today's economic news at Wall Street, Consumer confidence rose in November to its best reading in more than four years. The latest consumer confidence reading for November came in at 73.7, while market expected a reading of 73.0. The Conference Board said its consumer confidence index rose to 73.7 in November from 73.1 in October. That's above the 72.2 level forecast. The October reading was upwardly revised from 72.2.

Separately, the September Housing Price Index from the FHFA increased by 1.1%, which follows a 0.7% increase observed during the prior month. Also, the September Case-Shiller 20-city Home Price Index rose by 3.0%, while a 3.1% increase had been expected. This followed the previous month's increase of 2.0%.

Durable goods orders were unchanged in October, which was better than the 0.4% decrease that had been expected. Excluding transportation related items, durable goods orders increased in October by 1.5%, which was better than the 0.4% decrease that had been broadly anticipated. Prior month's reading was revised down to reflect an increase of 1.7%.

Traders and investors are also focused on the negotiations among U.S. lawmakers and President Obama regarding the so-called “fiscal cliff” tax increases and spending cuts that are approaching.

At the MCX, gold prices for February delivery closed lower by Rs 149 (0.45%) at Rs 32,594 per ten grams. Prices rose to a high of Rs 32,825 per 10 grams and fell to a low of Rs 32,550 per 10 grams during the day's trading.

At the MCX, silver prices for December delivery closed lower by Rs 198 (0.31%) at Rs 63,536/Kg. Prices opened at Rs 63,877/kg and fell to a low of Rs 63,361/Kg during the day's trading.

Silver Tips

Gold continues to edge higher on the daily charts as technical factors continue to support the up move. The near term support for Gold has now moved up to around Rs 31,700-odd levels.

Most of the momentum oscillators continue to remain in buy mode for Gold. Hence, any dip should be looked as a buying opportunity, with a stop at Rs 31,680.

The weekly charts, indicate an upside target of Rs 32,500 for the Gold.

For today, the Gold MCX December futures may face resistance around Rs 31,865-31,880-31,900. On the downside, Gold MCX may seek support around Rs 31,760-31,745-31,730.

The corresponding key levels for Gold Mini December futures are as follows - support at Rs 31,770-31,755-31,740, while face resistance around Rs 31,875-31,890-31,910.

MCX Silver Tips

Silver Holds more Promise on Chinese Buying:

A Chinese survey of purchasing managers pointed to a modest recovery in October. Refined Copper imports increased by 17% for the month and 7% year-on-year as a combination of improved sentiment and a pickup in financing activity drove increased buying. There was a shocking increase in refined Zinc imports, to the highest level seen since May 2009 at 73,000 tons. Silver demand in China, the world’s second-largest user, may jump as much as 10% next year to a record as investors look to preserve wealth & consumption may climb to as much as 7,700 metric tons. About 33% of the country’s demand comes from jewelry and coins, with the rest from industrial use in photography, solar and electrical appliances. A recovery in the solar industry may add to Silver Demand. The government is targeting 21 Giga-watts of solar-power installations by 2015 after installing 2.6 Giga-watts in 2011, according to Bloomberg New Energy Finance. Chinese investors are buying more silver as the second- largest economy slowed for a seventh quarter. Chinese investors want hard assets such as silver, especially when it’s cheaper than gold and requires less funding. Many producers and investors have hoarded the precious metal in the form of ingots or un-wrought Silver. Silver rose 53% in the Federal Reserve’s first round of quantitative easing, or QE, from December 2008 through March 2010, twice as much as gold, and 24% during the second phase ending in June 2011, three times as much.

Gold Silver News

Gold traded close to the lowest level in more than a week. Comex Gold prices ended with moderate losses yesterday, on more profit taking and technical consolidation on the charts. A stronger US Dollar index has also lent selling pressure to Gold and Silver early this week. Gold and Silver yet are in Bullish zone with downsides seemingly limited amid prompt bottom fishing. Gold and Silver have been consolidating at lower levels since over a week now & seem poised to take on a new leap upwards. Gold Futures for December delivery on the Multi Commodity Exchange – MCX Gold was higher at 31,450 rupees per 10 grams, after hitting a high of 31,475 INR, a level last seen on October 1, helped by a weaker Indian Rupee. The Indian festival and wedding season will start picking up in late October and peak next month during Diwali and Dhanteras, traditionally the occasions for buying & gifting Gold Bullion or Jewelry in India. Comex Gold yet has substantial support around $1747 & then further below at $1720. Upside target remains steady at $1855. Silver has been struggling to break above the resistance of $35.20 & once it closes above this, it enters a strongly bullish zone. Silver has substantial support around $33.

USD Economic News

Brent futures held steady near USD 114 on Wednesday as expectations Europe's financial crisis is on the mend renewed hopes of a revival in oil demand growth, while simmering tension in the Middle East provided additional support.

Asian shares, the euro, base metals and gold all rose after Moody's Investors Service affirmed its investment grade rating on Spain, helping ease investor worries of a worsening crisis in the region. Oil was also supported by supply concerns as the European Union slapped fresh sanctions on Iran.

Brent slipped 12 cents to USD 113.88 a barrel by 0432 GMT. The November contract, which expired on Tuesday, went off the board 73 cents lower at USD 115.07, while the December one settled 40 cents lower at USD 114.00. US oil gained 18 cents to $92.27.

"We are seeing prices react to the investment grade news for Spain, but the demand outlook continues to look weak because of the global economic condition," said Victor Shum, managing director at IHS Purvin and Gertz in Singapore. "Prices are drawing support from supply concerns in the Middle East."

European Union governments imposed sanctions against major Iranian state companies in the oil and gas industry and strengthened restrictions on the central bank.

More than 30 firms and institutions were listed in the EU's Official Journal as targets for asset freezes in the EU, including the National Iranian Oil Company (NIOC), a large crude exporter, and the National Iranian Tanker Company (NITC).

The United States and the European Union are putting pressure on Iran to stop its disputed nuclear programme, while Tehran says it needs the technology to generate electricity.

Silver Tips

Silver Tips :-

Gold Prices have been losing steam ever since it failed to cross the $1800 level. For now, risk appetite is weighing on commodities, and uncertainty is weighing on the Euro. With a slightly higher dollar, Gold Prices are feeling the pressure and losing ground. Comex Gold Prices hit a fresh four-week low & bottomed at $1729.7 closing around $1737.6 yesterday. The US Dollar index was firmer on some short covering and some perceived safe-haven buying & Crude Oil prices were slightly lower. MCX Gold Prices slumped to Rs. 30956 / 10 gms yesterday & have declined further today to Rs. 30862 on the back of a strengthening Indian Rupee. For the week ended Oct. 9, speculators in CFTC - the Commodity Futures Trading Commission’s weekly commitment of traders report bumped up their net-long positions in the Precious Metals. The downside break in Gold Prices may give traders & Investors the much needed re-entry in long positions after having booked gains close to $1800 in Gold Futures. The net-long positions in Gold Futures remain heavy. Gold ETF holdings are still at record highs and speculative positions at their highest since August 2011. While speculators are adding to their bullish positions in Gold, the momentum behind the gains are beginning to slow. China’s consumer inflation came in a bit lower than expected in the latest batch of Chinese economic data. That prompted speculation among traders that China’s central bank may have more leeway in further easing monetary policy. China’s trade surplus also grew in September, which suggests domestic demand in China is on the upswing. However, the weekend China data also showed bank lending growth weaker than expected in September. On the European Union sovereign debt front it’s Greece’s turn to be in the spotlight this week, as EU officials cannot seem to agree on how or when to provide the next tranche of bailout funds to the financially troubled country. The willingness of the European Central Bank to buy bonds of troubled nations is the key for the Euro to rise eventually, when the time comes. Downside in Euro remains limited. The focus for the EUR this week remains on this week’s EU Summit being held on Thursday through Friday. Traders tend to monitor foreign-exchange moves since they can impact base and precious metals alike. With the INR strengthening, Gold has found handsome support from a pick-up in buying in India in the weeks preceding the key festival of Diwali.