GS: Asian Metals Market Update for 1st December, 2008
Last week
Gold consolidated in wider $805-$830 range while silver consolidated in $10.00-$10.55 range on lack of major market moving news and month end factors. Demand was stable but there were concerns that there could be a temporary shortage of physical gold and silver in the short term if demand from US, Europe and other developing nations rose.
Indian gold prices traded in Rs.12900-Rs13300 range last week while silver traded in Rs.16600-Rs.17900 range.
Indian Rupee
The Rupee weakened after the Mumbai blast on Friday. We expect the rupee to gain today as trading volumes return to normal. Month end factors for the rupee are over. Key support 49.76 and 49.32 while resistances are at 50.27 and 50.59.
TODAY
Technicaly gold and silver are in a bullish zone. This is a very crucial week for gold and silver, if they fail to break key technilcal resistances then they will fall further and reverse will happen if they break key resistances.
Failure of gold to break $840 this week will result in a fall to $786 and $744 this week while a break of $840 will result in $870 and $900. 100 day moving average of $825.0 is the key intra day resistance. On the lower side support starts at $798.80 with $782.10 as the key support.
Failure of silver to break $11.01 this week will result in a fall to $9.79 and $9.08. This week silver is bullish over $9.79. Intra day fresh sellers will emerge only on a consolidated fall below $9.95.
PHYSICAL GOLD AND SILVER – INDIAN RUPEE TERMS
Failure of gold to break 13300-13500 this week will result in a fall to 12800 and 12500 and failure of silver to break 18300 this week will result in a fall to 17000 and 16200. Physical traders should buy gold on a consolidated break of 13300 else wait for a correction and then buy. Physical silver traders should buy silver over 18300 else wait for a correction and then buy.
Investors can invest in physical silver quantities at the current prices and aggressively around 15500 and below.
