Spot gold is flirting with fifty day moving average of $1672.00. It needs to trade over $1672 for the rest of the week to be in a bullish zone. Spot silver has to trade over two hundred week moving average of $20.86 to be in a short term bullish zone. There can be sharp correction in spot gold and spot silver if they trade below the above mentioned key support zone.
I am against new buying at current price and will prefer to wait for trend after London open. India is closed today. India will not have any impact on bullion price. US senate election trend will have a temporary impact on precious metals and base metals.
The general consensus on global inflation is that it is on the verge of forming a medium term top. Inflation should fall from the first quarter of next year. Interest rate hikes will pause anytime after January 2023 globally. I see a sharp increase in far dated call option buying in gold, silver, and copper.
In short, all the price fall (if any) in gold, silver, and copper should be used to invest. Day traders and jobbers have to be on the sidelines. Lower US October CPI inflation number is getting factored in by the markets. A higher CPI will cause a temporary sell off in gold and silver and copper.
I am bullish on gold and silver after CPI tomorrow and expect $1700 and $21.50 resistances to be broken. It will be prudent to use higher trailing stop losses as traders reacts wildly to any economic headline number. Low risk traders do not leave any open position for tomorrow.
All asset classes are entering a crucial one-week phase. Position squaring and rebuilding for January month will be there once there is clarity on inflation, interest rates and bond yields. (by end of next week.)
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COMEX FUTURES DAILY TECHNICAL |
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|
Gold Dec |
Silver Dec |
Copper Dec |
Nymex Crude oil |
|
CMP |
$1,675.80 |
$2,075.30 |
$358.30 |
$91.62 |
|
S5 |
$1,620.50 |
$1,847.80 |
$329.25 |
$85.48 |
|
S4 |
$1,633.77 |
$1,902.40 |
$336.22 |
$86.95 |
|
S3 |
$1,648.15 |
$1,961.55 |
$343.78 |
$88.55 |
|
S2 |
$1,654.68 |
$1,988.40 |
$347.20 |
$89.27 |
|
S1 |
$1,662.75 |
$2,021.61 |
$351.44 |
$90.17 |
|
|
|
|
|
|
|
R1 |
$1,688.85 |
$2,128.99 |
$365.16 |
$93.07 |
|
R2 |
$1,696.92 |
$2,162.21 |
$369.40 |
$93.97 |
|
R3 |
$1,703.45 |
$2,189.05 |
$372.83 |
$94.69 |
|
R4 |
$1,717.83 |
$2,248.20 |
$380.38 |
$96.29 |
|
R5 |
$1,731.10 |
$2,302.80 |
$387.35 |
$97.76 |
|
Breakdown level |
$1,661.98 |
$2,018.43 |
$351.04 |
$90.09 |
|
Breakout Level |
$1,689.63 |
$2,132.18 |
$365.56 |
$93.16 |
|
CMP= Current price market price |
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ABOVE TECHNICALS ARE ONLY FOR REFERENCE |
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Spot Gold:
- Daily support: $1647.20 and $1661.50
- Daily resistance: $1686.90 and $1701.20
- Spot gold has to trade over $1672.00 to rise to $1701.20 and more.
- Spot gold can move $40 either side from $1672.
Spot Silver :
- Weekly Support: $19.67 and $20.20
- Weekly Resistance: $21.00 and $21.59
- Spot silver has to trade over $20.86 to continue its rise and target $21.40 and $22.05.
- Crash or sell off will be there if spot silver does not break $21.40 by Thursday close.
COMEX GOLD DECEMBER 2022
- Gold has to trade over $1660-$1665 zone to rise to $1693.50 and $1708.10.
- Gold crash only if it trades below $1660.00.
- Gold will also crash if it does not break $1693.60 by tomorrow close.
COMEX SILVER DECEMBER 2022
- Silver has to trade over $2090 to be in an intraday bullish zone and rise to $2145 and $2205.
- Silver will crash to $2038 and $2005 in case $2090 is not broken.
NYMEX CRUDE OIL (December 2022)
- Crude oil has to trade over $90.80 to rise to $94.30.
- There will be sellers if crude oil trades below $90.80.
COMEX COPPER DECEMBER 2022
- Copper can fall to $353.40 and $345.80 as long as it trades below $364.00.
- Copper needs to trade over $364.00 to be in an intraday bullish zone.
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