Hold long position in Gold with SL Rs 30600: Mangal Keshav

Mangal Keshav has come out with its report on Gold, Silver, Crude Oil and Natural Gas. According to the research firm, Gold Prices have strong support at 200-day SMA Rs 30670. This is a very strong support and trend is expected to go bearish only below the given level. One can hold long position with very strict stoploss below Rs 30600.
 
Gold futures declined, pulling back after gains over the past two trading sessions, but prices finished well off their lows of the day amid upbeat prospects for investment demand. Gold holdings of SPDR gold trust, the largest ETF backed by the precious metal, declined to 1,334.42 tons, as on Jan 16. Silver holdings of ishares silver trust, the largest ETF backed by the metal, increased to 10,734.99 tons, as on Jan 16. In an update to its Gold Survey 2012, GFMS said it expects gold to extend its more than a decadelong bull run in 2013, with prices potentially testing USD1,900 per ounce in the first half of the year, as solid demand for the metal from central banks and from opportunistic buyers in India and China outweighs a “sizeable bearish contingent” in the market.

The dollar held marginal gains against the euro, as Japan’s yen slowed its pace of appreciation, with some technical levels and comments from central bank officials leading traders to reversed bets.  The International Monetary Fund agreed to disburse 3.2bn Euros (USD4.3bn) to Greece, after the country made new budget cuts, received more favorable aid terms from European nations and conducted a bond buyback. Copper futures declined, on worries about the pace of China's growth and as the World Bank's trimmed forecast for the global economy, which may hit demand expectations for the metal.
China's production of zinc concentrate is expected to increase by 10-15% this year, compared with a 21% y-o-y jump in 2012, Beijing Antaike, the state-run nonferrous metals consultancy said on Wednesday. Crude oil prices rose on Wednesday, after an Algerian gas field came under attack from Islamist militants and as data showed crude stocks fell in the United States last week. Crude oil inventories fell 951,000 barrels, gasoline stocks rose 1.91mn barrels and distillate stocks rose 1.69mn barrels, as per EIA. Crude stocks at Cushing rose by 1.78mn barrels to an all-time high of 51.86mn barrels, as per EIA. Natural gas futures closed lower on Wednesday, for the first time in five sessions, pressured by some profit taking ahead of Thursday's weekly inventory report despite colder weather in the Northeast and Midwest this week that has boosted demand. Natural gas inventories are expected to decline by 137bn cubic feet, actual data will be released by EIA later in the day. Technical Alerts-
Gold Prices have strong support at 200-day SMA 30670. This is a very strong support and trend is expected to go Bearish only below the given level, last support at 30350. Till then the trend remains up. We maintain our previous view and advice Traders/ Investors to hold long position with Very Strict Stop below 30600.
Spot Gold Prices have been hovering around at USD1,661.5 per ounce (200-day SMA) with no clear direction. Next support now holds at/can be tested is at USD1,600 and resistance at USD1,696.5 (50-day SMA)- USD1,716 (100-SMA day). Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions. To read the full report click on the attachment

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