Buy at dips advised on 25 April 2012: Gold declined to $1625 & Silver sharply dipped to $29.93 after the FOMC policy makers kept interest rates unchanged, refrained from new actions to lower borrowing costs & are also holding off on additional steps to boost the economy. Gold and Silver are technically down close to strong support levels in the longer term. Gold remains attractive till keeps floating above $1603 & Silver till holds fort above $28. Positional traders or investors in these commodities can start staggered buying in next month contracts of Silver & Gold. Keep invested in these for a medium term outlook, as more turbulent times are around the corner.
Result of the Trading Tips seen today: Gold and Silver trades have both shot up today, in the Commodity Markets from the dips seen yesterday when Buy was advised. Gold futures for June delivery on the Comex in New York, shot up to $1662 from $1625 & Silver futures for May delivery seen holding to the day’s high of $31.26 from the lows of $29.93 seen yesterday.
Immediate resistance for Gold trading can be expected around the $1675 to $1693 range & immediate resistance for Silver trading can be expected around the $31.60 to $32.50 range. Some profit booking can be expected at these levels. If this is seen, then Gold & Silver may continue to move in a limited range as seen for the past 30 to 45 days.
If Gold and Silver trades achieve a break through above this resistance range, then further rises to the next important & a stronger resistance can be expected. The higher resistance range in Gold is expected to be around $1765 to $1801 & in Silver at around $35.20 to $37.
Larger rises expected in Gold & Silver only on a substantial momentum above these resistance levels supported by large sized long positions in Bullions in the Commodity trading Exchanges. Add fresh positions only on a substantial momentum above each of the given resistances only. A break above $1801 in Gold & above $37 in Silver may trigger substantial momentum to push Gold and Silver to much higher levels as indicated in our earlier posts on Gold and Silver.
Gold rose the most in two weeks on speculation that the Federal Reserve may increase stimulus measures to boost up theU.S.economy. In his speech yesterday, Fed Chairman Ben S. Bernanke said that the central bank will do more to fuel growth if necessary. Labor Department figures showed today that jobless claims, forecast to decline to 375,000, fell only by 1,000 to 388,000 from 389,000 the prior week. Consumer Comfort Index declined to -35.8 from -31.4 the previous week.
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