MARKET OUTLOOK OF COMMODITY 09 FEB 2016

“SELL GOLD BELOW 28300 TGT 28100/28000”

GOLD ROCKSSSSSSSSS HIT FINAL TGT 28100 MADE HIGH OF 28516 !!!!!!!!!!!!!!!!!!!

Gold: The price of gold jumped 2 percent to a 7-1/2-month high on Monday, briefly nudging above the psychological level of $1,200 an ounce, as sliding stock markets and worries over global economic growth prompted investors to seek safety. Some recent weak economic data, particularly from the United States and China, has led financial markets to expect there will be fewer U.S. rate hikes this year than the four they had been pricing in a few weeks ago, perhaps only one. Lower rates cut the opportunity cost of holding gold, which earns no yield but costs to store and insure. Hedge funds and money managers boosted their bullish bet in COMEX gold to a three-month high in the week to Feb. 2, data showed on Friday. Gold prices are now trading between strong resistance between 27400 up to 27850 zones. Failure to sustain between these levels will trigger a sharp correction in the counter.

A daily close below 27190 will see prices correct towards 26975/26800 levels. Sustenance above 27500 will see prices test 27685/27850 levels.

Outlook : We expect gold prices to trade sideways as weak economic data from the US likely to support prices and profit booking likely to prices under pressure.

Silver: The outlook for Silver will stay positive until prices hold on to support around 35400 levels. Until then corrective moves from higher levels will find support between 35990—35500 zones. Sustenance above 36000 will see prices test 36385/36550 levels on the upside. A daily close below 35400 will trigger a breakdown towards 35100/34990 areas.