Gold could face its own OPEC moment as Swiss referendum nears

Gold prices took a dive on Friday as the market geared up for what could be the metal’s own OPEC moment — when Switzerland will vote on whether its central bank should hold more gold and bring back its other gold reserves held in places like Canada and the U.K.

December gold GCZ4, -2.60%  fell $21.40, or 1.8%, to $1,175.20 an ounce, while silver SIZ4, -7.15%  tumbled $1.06 cents, or 6.4%, to $15.49 an ounce. U.S. markets took a holiday on Thursday and closed early on Friday at the Chicago Mercantile Exchange.

Market Closing Update

MALAYSIAN shares ended lower on Friday with the Kuala Lumpur Composite Index slipping 9.02 points to close at 1,820.89.

Some 1.87 billion lots, valued at RM1.99 billion were traded. Gainers numbered 241 while losers numbered 609.

KLSE Stock Recommendations

MARKET UPDATES :

Number forecast operator Magnum Bhd’s earnings fell 29.8% to RM45.42mil in the third quarter ended Sept 30, 2014 from RM64.77mil a year ago due to losses incurred by its investment holdings segment, mainly attributed to fair value losses of quoted investments. It said on Thursday its pre-tax profit fell 3.2% to RM74.72mil from RM77.12mil. Revenue fell 4.6% to RM669.98mil from RM702.39mil. Earnings per share were 3.2 sen compared with 4.6 sen. It rewarded shareholders with a dividend of 5 sen per share.



STOCK RECOMMENDATION :

BUY KLCC PROP ABOVE 6.890 TARGET 6.940 7.000 SL 6.810

KLSE IForex Recommendations

TRADING TIPS :

EUR/USD was down 0.22% to 1.2478, off session highs of 1.2522. The euro was slightly lower against the dollar on Thursday after data showed that the annual rate of inflation in Germany slowed to almost a five year low this month, fuelling concerns over the risk of deflation in the euro area.Germany’s consumer price index rose just 0.6% this month, data on Thursday showed, down from 0.8% in October. On a month-over-month basis, prices were flat. Investors were looking ahead to preliminary data on euro zone inflation due to be released on Friday. The annual rate of inflation in the euro zone fell to 0.4% in October, well below the ECB’s target of close to but just under 2%.

INTRADAY OUTLOOK
Support: 1.2437
Resistance: 1.2492

RECOMMENDATION:
1. Buy EUR/USD Above 1.2495-TG:1.2515/1.2545 SL 1.2465
2. Sell EUR/USD Below 1.2430-TG:1.2410/1.2380 SL 1.2460

INTRADAY OUTLOOK
Immediate Support: 117.95
Immediate Resistance: 118.65

RECOMMENDATION:
1. Buy USD/JPY Above 118.67-TG:118.87/119.13 SL 118.37
2. Sell USD/JPY Below 117.92-TG:117.72/117.42 SL 118.28

KLSE Comex Recommendations

INTERNATIONAL COMMODITY NEWS :

Gold prices eased in early Asian trade on Friday with investors focused on demand cues from Switzerland and year-end holiday sales. On the Comex division of the New York Mercantile Exchange,gold future for February delivery traded at $1,189.50 a troy ounce, down 0.06%. Overnight, gold prices inched lower on Thursday, as trading conditions remained thin with markets in the U.S. closed for the Thanksgiving Day holiday.

TRADING STRATEGY :

SELL GOLD BELOW 1180 TARGET 1170 1160 SL 1190
BUY GOLD ABOVE 1193 TARGET 1203 1213 SL 1183