Sunday, July 17, 2011

Gold has given a breakout Technically

A few weeks back, we had uploaded a presentation on Gold. Lets re-visit the presentation and a few short terms pointers.

Gold has given a solid Technical Breakout by Closing above the previous Intra Day high of 1577 dollars, 3 days of the week and on a weekly basis. The next target should be the psychological 1600 USD mark.

The previous top at 1577 dollars will now work as a support.

How do we play Gold from here?
The Rupee has strengthened against the Dollar to Rs 44.54 on the back of the so-called FII inflows. This means that whenever there is a sell off in the markets Gold will rise in rupee terms.

For Gold to rise, even if it remains at current rates in USD terms, the rupee weakening will do the trick.

If we look fundamentally, for Gold things are looking up even more. The European economies continue to flounder, the US will have to go for QE-3 soon.

One should look at Gold as an Investor and continue adding Gold at every dips or when one has some extra cash to put away. 1-2 gms at a time all add up at the end of the day.

Technically, the markets are in a range. Expect the range of 5500- 5650 to break soon, giving targets of 5400 and 5800 on either sides.

The Results are out and the early ones are not too great. Usually, the better results come out earlier.

So, enjoy the rains.

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