Gold calls.Long term -medium term and intraday calls in gold is here !.

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News reports show that pension funds will begin to purchase gold as financial insurance, which will lead to further price increases. Already the Teacher Retirement System of Texas has announced that they will be purchasers.
 
Good article:

Gold at $2,000 Becomes Inflation-Adjusted Bullseye for ‘80 High

Oct. 19 (Bloomberg) -- Gold’s rally to a record means prices are still 53 percent below the 1980 inflation-adjusted peak.

While gold rose 19 percent this year to $1,072 an ounce on Oct. 14, consumer prices almost tripled in the past three decades, eroding the metal’s value. Bullion hasn’t kept pace with the cost of bread, fuel or medical care. In 1980, gold hit a then-record $873 an ounce. In today’s dollars, that would be $2,287, according to the U.S. Labor Department’s inflation calculator.

Record government debt and interest rates close to zero percent are pushing gold higher for a ninth straight year, and options show investors expect the rally to continue. When prices reached all-time highs, the contract with the most open interest was the December call to buy the metal at $1,200. The contract to purchase at $1,500 an ounce was the third biggest.

“Gold is not at any peak,” said Martin Murenbeeld, the chief economist at Toronto-based DundeeWealth Inc., which manages $58.5 billion in mutual funds and brokerage accounts. “The world’s money supply has increased and gold hasn’t kept pace,” he said. “We’re now in a period where gold is catching up.”

The U.S. Dollar Index, which measures the currency against those of six major trading partners, fell on Oct. 15 to the lowest level in 14 months, and has dropped about 7 percent this year. President Barack Obama has increased the nation’s marketable debt 22 percent to $7.01 trillion to revive growth.

Preserving Value

Gold bulls say today’s record borrowing and low interest rates mean the government will have to accept faster inflation as the economy recovers. Investors buy bullion to preserve value during times of turmoil and economic stress.

Financial institutions worldwide have reported credit losses and writedowns of about $1.62 trillion since the start of 2007, when the credit crisis began. Group of 20 governments have pledged about $11.9 trillion to ease credit and revive economic growth, according to the International Monetary Fund.

“Gold is the hedge against currency devaluation,” John Brynjolfsson, of hedge fund Armored Wolf LLC, said in a Bloomberg Television interview from Aliso Viejo, California, on Oct. 7. He predicted bullion will top $2,000.

Banks have raised their gold estimates. On Oct. 9, JPMorgan Chase & Co. said the metal will average $1,006 an ounce next year, compared with an earlier projection of $950. Deutsche Bank AG forecast an average of $1,150, up 32 percent from its estimate in July. Barclays Capital said Oct. 12 that “prospects for a run at $1,500 should not be underestimated” next year.

Understated CPI

Gold would need to rise more than sixfold to top the 1980 record, using a more accurate inflation-adjustment, said John Williams, an economist and the editor of Berkeley, California- based Shadowstats.com. He said the government has understated the cost of living over the past two decades with adjustments in the way it measures the basket of goods and services monitored by the U.S. consumer price index, or CPI.

Gold futures for December delivery closed Oct. 16 at $1,051.50 an ounce on the New York Mercantile Exchange’s Comex division, gaining for a third straight week.

“If the methodologies of measuring inflation in 1980 had been kept intact, gold would have to hit $7,150 to be the equivalent of the 1980 record,” Williams said.

The cost of living in the U.S. rose 0.2 percent last month, the Labor Department said on Oct. 16. Compared with a year earlier, consumer prices fell 1.3 percent. The CPI will drop 0.5 percent this year, before rising 1.9 percent in 2010, reflected by the median estimates of 61 economists in a Bloomberg survey. Annual increases averaged 2.8 percent a year in the past decade.

Purchasing-Power Adjustment

In March 1980, inflation surged to a 14.8 percent annual rate, two months after gold capped a four-year rally. Adjusted for the decline in the dollar’s purchasing power since then, gold’s Oct. 14 record of $1,072 represents the equivalent of $409 in 1980 dollars, the Labor Department calculator shows.

Since January 1980, the average price of a pound of white bread has risen almost threefold, from about 50 cents to $1.38 in August, and medical care has surged more than fivefold, Labor Department figures show. Gasoline and electricity prices have more than doubled.

Today, the gap between gold’s spot price and its CPI- adjusted equivalent is the widest ever.

Gold hasn’t been as effective a hedge against inflation as oil since the 1980s, said Matt Zeman, of LaSalle Futures Group LLC in Chicago.

Oil Beats Gold

Crude passed its 1981 inflation-adjusted record two years ago. The cost of imported oil averaged $39 a barrel in February 1981, after Iran cut exports, according to the Energy Department. That’s $89 in 2007 dollars, the Labor Department calculator shows. Oil reached a record $147.27 on July 11, 2008, and closed at $78.53 on Oct. 16 in New York trading.

“If you bought gold in the 1980s, you’re still losing money today,” said Zeman, a metals trader. Gold prices in New York languished for two decades after declining from the 1980 record, dropping to a 20-year low of $253.20 on July 20, 1999.

While bulls say gold is cheap, the inflation-adjusted price is 15 percent above its 30-year average, Bloomberg data show.

The Federal Reserve may limit gains by raising interest rates before inflation balloons, analysts said. Fed Chairman Ben S. Bernanke said on Oct. 8 that policy makers will need to raise interest rates “at some point” to control inflation.

‘Prepared to Tighten’

“When the economic outlook has improved sufficiently, we will be prepared to tighten,” Bernanke said in remarks prepared for an Oct. 8 conference in Washington.

Fed moves to cool inflation and the government’s revenue needs will stop gold, according to Jon Nadler, a senior analyst for Montreal metals dealer and refiner Kitco Inc.

“These wild calls for several-thousand-dollar gold are typical of times when gold goes into uncharted territory,” Nadler said. “The Fed will pull the interest-rate trigger and the Obama administration will, in addition, pull the tax-hike trigger before we get into any serious inflation. Once the man on the street gets in, the gold rally is likely over.”

Gold held in exchange-traded funds climbed to records this month at Zuercher Kantonalbank and ETF Securities Ltd. Holdings in the SPDR Gold Trust, the biggest exchange-traded fund backed by bullion, are up 42 percent this year. Hedge funds and other large speculators hold their most-bullish position ever in gold futures. So-called net-long positions, or bets prices will rise, increased by 6 percent to 253,955 contracts in the week ended Oct. 13, according to the Commodity Futures Trading Commission.

Gold Producers

The Philadelphia Stock Exchange Gold & Silver Index jumped 43 percent this year, as Phoenix-based Freeport-McMoRan Copper & Gold Inc. tripled. Toronto-based Barrick Gold Corp., the world’s largest producer, fell 10 percent. Barrick said Sept. 8 it will record $5.6 billion in third-quarter costs to eliminate fixed- price contracts as the company bets gold’s value will climb.

At Jersey, Channel Islands-based GoldMoney.com, which held $759 million of gold and silver for investors as of Sept. 30, founder James Turk said bullion can climb eightfold based on the historical relationship between the metal and the Dow Jones Industrial Average. The Dow is up 10-fold since January 1980.

Gold and the Dow, which has gained 14 percent this year to 9,995.91, were at about the same level during the Great Depression and the early 1980s, he said. On Jan. 21, 1980, as gold futures surged to $873, the Dow slipped to 946.25.

“The dollar is constantly being debased and inflated,” Turk said. “By 2013, gold is going to be at $8,000 and the Dow will be at 8,000.”

Gold-Dollar Link

Deutsche Bank said early this month that the dollar will fall to $1.60 per euro next year, a drop of 7.3 percent from last week, because of “rising fiscal deficits and loose monetary policy.”

Gold has moved in the opposite direction of the dollar over most of the past decade. The metal’s correlation coefficient to the U.S. Dollar Index is minus 0.8539, Bloomberg data show. A correlation of minus 1 indicates two assets move inversely to each other, while a 1 would show they move in tandem. A reading of zero shows no correlation.

Philip Gotthelf, the president of Equidex Brokerage Group Inc. in Closter, New Jersey, says he expects gold to trade at $1,250 by year-end.

“Gold has been pushing higher because it’s no longer just a hedge against commodity inflation, it’s also a hedge against a change in world-monetary standards.”
 
Usdx

Usdx
 

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last week

oct 20
total -298 usd

oct 21
1st tgt 192 usd
total 1092 usd


oct 22
total 900 usd


oct 23
total 1812.5 usd


oct 23
  1. buy gold at 1052 sl 1948 tgt 1058-1065>>1st tgt met 600 usd
  2. or
  3. sell at 1068 sl 1071 tgt 1062.8-1058>>entry missed
  4. buy gold at 1062 sl 1058 tgt 1066 >> sl hit loss 400 usd
  5. buy silver at 17.53 sl 17.40 tgt 17.77-1792>>1st tgt met 300 usd
  6. buy aud/usd at 9225 sl 9190 tgt 9272-9330>>open
  7. sell usd/cad at 10490 sl 10535 tgt 10440-10380>>entry missed
  8. buy usd/jpy at 9150 sl 9120 tgt 9182-9190>>entry missed
  9. sell eur/usd at 15035 sl 10563 tgt 14990-1940>>1st tgt met 450 usd
  10. buy eur/jpy at 13780 sl 13740 tgt 13810-13840>>1st tgt met 300 usd
  11. buy eur/gbp at 9125 sl 9100 tgt 9165-9204>>entry missed
  12. sell crude at 81.2 $ sl 81.8 $ tgt 80.3 $-79.5 $>>1st tgt met,562.5 usd
total 1812.5 usd
 
Copper

Copper has a resistance at 316 however copper is in over bought situation as of now , No fresh buying recommend in this commodity

Resistance: 316-320.80
Support: 311.80-309.10

Zinc

Zinc has resistance at 108.55 if cross than it can open door for 110 however a reversal from here can cause for 100 as well major levels are following

Resistance: 108.55-110.60
Support: 106.80-103.70


Natural Gas

Natural gas has not broken our support which we mention at 201 now has a resistance at 234 and 243 however 243 is a big hurdle for that if cross than can open new bull phase till 300+ if not sustain than can roll back till 190 as well
Stay cautious

Major Levels to watch

Resistance: 234-243
Support: 222-216


Crude

Crude has a support at 3699 if not broken than again can shoot till new high around 3800 a tough resistance at 3811 ahead as well

Resistance: 3811-3877
Support: 3699-3645


Gold

Gold has a resistance at 15940 if not cross than can roll backtill 15800-750 however a strong support at 15670 below this it can draw till 15400

Major Levels to watch

Resistance: 15940-16085
Support: 15670-510


Silver

Silver has support at 27050 if not break than can result 27500-27900

Major Levels to watch

Resistance: 27430-27660
Support: 27110-27040
 
Copper

Copper has a resistance at 316 however copper is in over bought situation as of now , No fresh buying recommend in this commodity

Resistance: 316-320.80
Support: 311.80-309.10

Zinc

Zinc has resistance at 108.55 if cross than it can open door for 110 however a reversal from here can cause for 100 as well major levels are following

Resistance: 108.55-110.60
Support: 106.80-103.70



Natural Gas

Natural gas has a resistance at 217 (Oct) if breaks than can drive till 226+ however a break below 207 can drive till 201-193 as well

Major Levels to watch

Resistance: 217-223
Support: 207-201


Crude

Crude has a support at 3699 if not broken than again can shoot till new high around 3800 a tough resistance at 3811 ahead as well

Resistance: 3811-3877
Support: 3699-3645


Gold

Gold has a resistance at 15940 if not cross than can roll backtill 15800-750 however a strong support at 15670 below this it can draw till 15400

Major Levels to watch

Resistance: 15940-16085
Support: 15670-510


Silver

Silver has resistance at 27050 if not break than can result 27500-27900

Major Levels to watch

Resistance: 27050-27320
Support: 26650-26410
 
Gold has a resistance at 15940 if not cross than can roll backtill 15800-750 however a strong support at 15670 below this it can draw till 15400
What currency is 15940 based upon?
When I put 15940 through the INR currency converter I get $340 USD...?

Your crude levels seem to be based in INR, but not gold?

Happy trading,
AC
 
There’s anxiety that gold can maintain a price above the $1,000 level and the number of buyers out there right now is diminished according to metals traders. I think investors are worried about a rally in the dollar, especially after the strength shown by the dollar the last few days. Gold continues to fall, heading for the longest decline since August, which provides a nice re-entry point after having reached 1064.
 

oct 27

  • buy gold at 1034.5 sl 1030 tgt 1038-1045>>1st tgt met 350 usd
  • or sell gold at 1045 sl 1048.8 tgt 1038-1031>>entry missed
  • buy silver at 16.87 sl 16.72 tgt 17.05-17.24>>sl hit loss 187.5 usd
  • or sell at 17.25 sl 17.36 tgt 16.92-16.72>>entry missed
  • sell usd/cad at 10640 sl 10667 tgt 10600-10580>>sl hit loss 170 usd
  • sell aud/usd at 9185 sl 9215 tgt 9150-9122>>all tgts met,350,630 usd
1st tgt=342.5

total 622.5 usd
 
free calls for oct 28
buy usd/cad at 10692 sl 10672 tgt 10732-10780
sell eur/jpy at 13500 sl 13525 tgt 13455-13422

usd/cad met 1st tgt , profit 400 usd

eur/jpy met 1st tgt profit 450 usd

book partial n trail stoploss for 2nd lot in aud/usd at 9033. sold at 9060 profit 270 usd
 
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