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Gold Ready for another Pounding – GBP will have Stronger Tone – May 21

May 21, 2013
Fed voting member Evans spoke nothing very unusual. He showed his optimism about the economic growth and thinks that progress in labour healthy, all he wants is that the economy should continue to preform and labour market to do well or else he would vote to extend FED’s duration of asset purchase program. I do not see any thing very awkward in his comment. 
On an average US economic indicators are showing acceptable growth momentum and lets not forget that out of twelve Evan has one vote. I think market will be more keen to pick words from BEN’s mouth and I will not be surprised if Bernanke gives some clue about FED’s intention, though there is 3-weeks time for FED’s next policy announcement.
Gold after hitting my target bounced back from $ 1438 level in a hope that Evan’s statement may have some substance, but market has forgotten that gold decline is caused due to may factors Central Banks are not purchasing aggressively for their reserves, there is reduced demand from Chinese investors, buying from India is OK and hedge funds are no more digressive buyers. I think holding around $ 1400 levels may give jitters to the courageous bulls and technically only  break of $ 1420 would risk for more upside gains. Hence, I will not be surprised to selling interest before Fed Chairman takes the podium.
While, prior to economic data release Euro and GBP may continue to show some more strength specially in crosses in expectation of better economic numbers, but I think we should simultaneously get ready to pick the top and sell Euro before the release of FED FOMC minutes, as US Dollar should make gains and gold should look less shiny.

Join me on Twitter for Updates                   @asadcmka………….

GMT 3:01 – GBP @ 1.5248 = Preferred buying area is 1.5210-20 with STOPS 1.5170. Break of 1.5265-70 will encourage for test and break of 1.53 levels.
GMT  – 3:09 – GOLD @ $ 1389 = I am expecting another test of $ 1393-95 zones in Asia before easing or else gold will start its decline in Europe, I would prefer to Sell with tight Stops around $ 1400 and would go for another sell around $ 1405-10 if seen with STOPS $ 1415. Break of $ 1370-75 will confirm move towards $ 1352-54 zones.
GMT  – 3:13 – JPY 102.53 = Yen may hold around 102.75-80, as failure to break this level would see a test of 102.10-20 levels, break will encourage for 101.70.
GMT  – 3:17 – AUD @ 0.9801 = The expected up move has occurred, but real test would be break of of 0.9840-50 levels, which may encourage for 0.9890. However, I will not be surprised to taking a dip to test 0.9765.
GMT 2:55 – EURO @ 1.2885 = I am expecting 1.2845 to hold for a test of 1.2930-35 zones, but would be careful around 1.2950 and would pick the top to sell Euro, as I do not see move beyond 1.3020 levels. Or else 1.2820 


Interaction with my Subscribers during the day……………

4:58 AM GOLD @ $ 1395 = Book your profit around $ 1395-97 & go short aroujnd $ 1398-00…….Cheers
 5:41 AM GOLD @ $ 1399.25 = Hope you have picked the top around $ 1400. Stops $ 1406……Cheers
7:15 AM GOLD @ $ 1392 = I would suggest taking profit around $ 1390-92………………………..Cheers
8:02 AM GOLD @ $ 1388 = failure to mobe avobe $ 1393 risk for a test of $ 1378-80 zones……..
8:03 AM I would like to add on break Of $ 1384-85 levels…………
8:34 AM Hi sir, Where to close GBP shorts ? thank
8:35 AM 1.2860 Buy here?
8:41 AM Wait & watch moeen, dip could expend up to 1.2820-40 after poor data….
Similarlly Cable could see more losses and is likley to test 1.514050 zones….
 8:50 AM GOLD @ $ 1385.25 = Still look for atest of $ 1378-80 zones…………
9:09 AM GOLD @ $ 1378.50 = Lock your profit and god long around $ 1372-74…Cheers
 9:52 AM sir shall go short gbp at 1.5180 with stops 1.5220??
9:54 AM pd, inflation report is due in next 15 minutes. But this position looks OK to me…
10:56 AM what next in gold sir as 72 not reach so no buy now next view
10:56 AM sir, Right time to go long for a while in GBP around this level ?
10:59 AM now take rest until i am clear about new position……..
11:06 AM i am expecting fall to extend towards 1.5110-20 zones………………
11:20 AM gold views remain unchanged n sl
11:58 AM Gold @ $ 1378.50 = locked in $ 1375 – $ 1382 range…
 12:22 PM OK manav, if you have bout around $ 1372 apply stops $ 1367…..
 12:31 PM GOLD @ $ 1377 = Please book your profit around $ 1377-79….Cheers
1:17 PM GOLD @ $ 1365 = Buy around $ 1362-65. STOPS $ 1357……
 1:18 PM Do not rush, pick bottom
1:38 PM GOLD @ $ 1372 = If went long book profit around $ 1372-74…….Cheers
2:24 PM sir, Do u recommend Buying GBP+EURO at present positions ?
2:28 PM GBP @ 1.5115 = Book your profit around 1.5105-15 levels, though I am looking for more losses could test 1.50860-80 zones. However sell is not recomended…………
2:30 PM Thanks And YEN sir ? almost dead but something to take a chance?
2:46 PM EURO @ 1.2865 = I am not comfortable buying Euro as I still see risk for break 1.2825-35 levels for 1.2790-95…………
2:49 PM GOLD @ $ 1372 = Could find resistance around $ 1373-75, if fails to move beyond $ 1378, we may another fall…………
 2:59 PM OK pals, end of another fine day……
Cheers until tomorrow……………………………….

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