MUMBAI, Apr 20 - Near Term Gold Trading technical postures of the gold and silver markets remain tilted in favor of the bears, and that is limiting the upside for both metals. June gold last traded up $1.30 at $1,640.90 an ounce. Spot gold was last quoted down $2.00 an ounce at $1,640.50. May Comex silver last traded up $0.248 at $31.735 an ounce.
Another downbeat U.S. jobless claims report issued Thursday morning failed to move the gold market much. Also, the much-anticipated Spanish bond auction that occurred overnight was deemed by the market place as decent but not great. Gold also saw little reaction to that news. The gold and silver markets remain range-bound on a near-term basis, which is working to frustrate both the bulls and the bears. The precious metals markets need a fundamental spark to ignite significant price action, and it’s just not happening at present.
We feel any rally is short term to fizzle out around April 24 a date considered to be very auspicious by Indians due to Akshaya Tritiya and is considered an auspicious occasion to buy gold and in the last two years, a lot of trading interest has been observed on that day, in Gold ETF’s.
The year on year growth in Gold ETF’s on Akshaya Tritiya has been a high 145% from 2010 to 2011, because the gross traded value in Gold ETF’s has gone up from Rs 345 crores to Rs 846 crores in this period. CAGR since 2007 has been even more significant at 189%, for Akshaya Tritiya. ( NSE data) Last year too, the exchange had extended the trading hours for trading in Gold ETF’s
Gold Technical View : We have made things simpler for readers, we have incorporated a indicator overlaid in prices which gives the common investor the over all trend of the commodity at a glance.
On the price chart ,we have given the Cylcle strenght indicator for GOLD , Silver, Crude, Euro and Dow – and the way to interpret is as long as the indicator values is above 0% – a bullish ( strength) signal and below 0% reading indicated a bearish ( getting weaker) signal.
As you see the Gold has given a sell signals recently and the rally this week was feeble and if Gold prices breaks the previous week low then Gold is much weaker as Intermediate rally was short fused. ( see previous posts and latest post here Gold Trading
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