- Bank of England Big-hitters Point to Further Rate Hikes, British Pound Holds Recovery Gains
- Inflation figures are not under control till date.
- So as a International Bank or as an RBI rest of other Banks what action should take or whats they gonna do.
Answer is simple :
- Interest rate hike in Next meeting, date or next month. This hike may be done by Bank of England, Federal Chair Person Powell from USA, ECB is also ready to hike in COMING Meeting, India is ready to do the same, Most of the World's Bank are now ready to Hike interest rate for disinflation.
Effect:
- As from this level Interest rate increase will attract huge amount of money towards Govt.
- Bond & their policy, Equity markets are already on upside because of Good quarter result in US Indices remain up till date as well Indian Indices too.
- Now As an Investor Gold is already on its very High price We do not prefer neither other long term Investor wants to go for Long position as of now. So what is a 2nd Choice Gold will move down side only specifically because of Interest rate Hike.
Technical point of View:
- COMEX Gold futue has break 1878$ & awaiting for a closing only. As it cross & sustain below 1878$ with or without closing has open the Gate of 1794$ already. Interim Point where Gold will rest is 1832$ which
- Gold has Cross 1878 in Comex Future new Contract has open the gate of 1794$ now.
- In MCX Vs COMEX there is a huge disparity in between.
- So you can not define exactly only based on MCX levels & trade
Gold
- At the time of Budget Day MCX Gold has steal 600 point from MCX without any duty without USDINR movement without any COMEX effect, now they will return to MCX gold anytime soon which is still DUE to settle.
Range: 56850 - 55850
Our Preference: Sell Gold 56700 for target 55900 with SL 56950+
Alternative Scenario: Buy Gold 55850 = 1832$ future with SL 55700 for target 56200
Gold has break its Support so we believe its in Open sell zone as it is below 56900
Silver
- Silver has touch our target 66500 in holding, & till date it was buy side we prefer in Silver but now a gate of 62350 has open in silver below 66500
Range: 64211 - 68200
Our Preference: Sell Silver below 66000 with SL 66500+ only if sustain for target 64200
Alternative Scenario: Buy Silver 66300+ target 67500 with SL 66000
Silver is definitely move down side only because future premium has wipe out clearly COMEX Spot & COMEX Future price are now 1 & the same so its clear indication of sell silver only.
So in totto both Gold & Silver are now in Open sell from our side Gold back up sell 56850 & Silver back up sell 67200 only
Posted by Tradelinecapital
