Gold & Silver; Where is the Chinese Demand?
Chinese
Whispers on a potential strong demand from mainland China. That
demands remain elusive and countered with further selling.
Technically, the yellow metal is oversold but with prices will remain
weak if there is no spark of buying frenzy. It remains doubtful if
there are any demands that could bump the price of gold higher.
Shorting the yellow metal seems to be the better option as traders
look into the next quarter with rising interest rate from central
banks. Continued straining of monetary policy will play a key role in
the demand to buy gold as an inflation hedge. However, concern
remains on deflationary pressures that are building up in Europe. For
all we know, the turbulent Japanese economy could play a nasty part
to destabilise the global economy should Abenomics failed to raise
that inflation rate.
Gold
Technical Outlook
Weekly
Chart
The
next solid support on gold should it break $ 1266 will be $ 1244
area. Failure to hold that will indicate further selling and a return
to $ 1180. Unless it can break above the downtrend line, our current
projection remains to the lower end of $ 1100. The current price at $
1285 needs to build a few more layers of support and only a retest of
$ 1276 will give the bulls some confidence. Another retest at lower
numbers, $ 1277 or $ 1266 may be the opportunity for bargain hunters
to enter the market. Further buying at $ 1295 will then allow the
bulls to break higher to retest $ 1330 area.
| Resistance: $ 1300, $ 1329.50, $ 1355 Support: $ 1244, $ 1266, $ 1278 |
Traders Notes: Buy
on support at $ 1271 stop at $ 1261 target $ 1292
| Short Term (1 - 3 weeks) | Medium Term (1 - 3 months) | Long Term (6- 12 months) |
| Bearish $ 1255 | Bearish $ 1200 | Target $ 1550 |
Silver Technical Outlook
Weekly Chart
Silver is building some solid support at $ 19.55 to $ 19.75 area. A
sudden surge in demand could see prices rising higher and retest
several key resistances. However, prices will remain capped in this
downtrend line but we see higher prices in the next few weeks once
the moving average crossed higher. Prices need to dictate this pace
first as we have seen in many occasions.
| Resistance: $ 20.09, $ 20.50, $ 21.48 Support: $ 19.50, $ 19.67, $ 19.77 |
Traders Notes:
Should the price stabilise and found support at $ 19.50, buy with a
stop loss of $ 0.30 to target the downtrend line at $ 21.40.
| Short Term (1 - 3 weeks) | Medium Term (1 - 3 months) | Long Term (6 - 12 months) |
| Flat | Flat | Bullish - a potential bull run? |
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07 Apr 2014 | Categories: Gold
