GOLD TIPS (JUNE - 2011) : Due to demand of ETF Fund and weakness in Dollar resulted Gold investment is save heaven and resulted a record high and closed at above 21500 level. Over all trading sentiment are positive, as inflation in China accelerated, underscoring the challenger that Central Bankers world wide face in combating the rising prices. Speculators were enlarging their position on expectation that the surging precious metal might gain further momentum in the coming months.
On a technical side, consider support 21200-21300 range.. as remain hold 21500 bullish view continue..... Above ................TARGET ............. 22500 in near term.
Comex : Strong bull favour.....with consider support US $ 1455... crossover 1500-1505 range decent move and first target 1535 $ mark.
SILVER TIPS (May - 2011) : Entered in unchartered territory...
Short covering, fresh speculative buying by Big Hedge Funds, high oil prices and geo political risks also helped previous metal to move further. On the other hand the steady rise in Silver supply currently is derived as a byproduct from Gold, Copper, Lead and Zinc as many mines have stopped functioning and no new mines has opened of late. On the other hand investors are consciously switching from Gold to Silver as they expected further appreciation in prices with growing industrial demand. Silver is current trading at 42 an ounce.....and may test 50-52 ounce which is a peak of 1980.
Silver rose to record high on concerns about rising inflation globally, and as a lingering Euro zone sovereign debt crisis continued to boost safe-haven demand. Chinese inflation gauges rose strongly again and the overall U.S. producer and consumer inflation readings rose, but remained sub-1%. Holdings in the world's largest silver-backed exchange-traded fund, iShares Silver Trust, rose by 69.81 tonnes, or 0.64 percent, from the previous session to 11,044.07 tonnes by April 15.
ow technically market is in overbot as RSI for 18days is currently indicating 80.26, where as 50DMA is at 54359.78 and silver is trading above the same and getting support at 61769 and below could see a test of 61149 level, And resistance is now likely to be seen at 62925, a move above could see prices testing 63461.
Trading Ideas:
Silver trading range is 61149-63461.
Silver rose to record high on concerns about rising inflation globally
Silver is having resistance at 62925 and support at 61769 level.
Holdings at ishares silver trust rose by 69.81 tonnes to 11044.07 tonnes.
Precious metals like gold and silver are highly price volatile and large capital is required to trade in them. Traders can quickly learn about updates on silver here and frame useful trading strategy according to the market needs.
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