Gold and Silver: What Prices Should be Expected in the Medium Term?

Market Leader informed

The gold market is concerned to some degree that the Chinese will raise interest rates during the weekend. It is also reported that Indian buyers of gold that were present yesterday at the Asian and European trading sessions and pushed prices to $1.395 per ounce left the market in the evening. It seems the gold market got no support from the higher opening of the stock markets today unlike in the industrial metals (platinum and copper). There is an opinion that gold prices, at least to some extent, were undermined by news that IAMGOLD might substantially increase gold production in 2011. However, gold hasn’t been very sensitive recently to high and low tides of physical deliveries.

As expected, silver will get a fresh support from news regarding repeated launch of silver coins in the US. There are also rumors that Indian buyers shifted their interest to silver treating it as a cheap alternative to gold. These should have pushed prices up. But it wasn’t the case and silver follows in the footsteps of gold. Nevertheless, if Indian interest really turns to silver this will significantly affect the silver market in general.

A reference: Currently India remains the largest importer and consumer of gold in the world. In 2009 it imported 350 tons of gold as compared to 45 tons received by China in the same period. At the same time, analysts forecast that China will take over India in the years to come in terms of gold imports. For example, by 30 October, during 10 months of 2010, China imported 209 tons of gold.

 

A divergence between these metals in the market today morning shows that there is no prevalent tendency in the market. Gold and silver traded weaker today morning. Platinum looks set to go under $1,675. However, given all the positive news coming in from the global car producing industry, traders can be now looking at buying April platinum futures after a temporary correction under $1,675.

 

Tips: buying April platinum futures at a pullback to $1,665 with a target at 1,900, risk: close when price reaches $1,630. Buying March silver futures from $27.70 per ounce with a target at 30.0 and a stop at 27.30.

[22:06] Artur (sabur):

 

 

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