The rise in global stock markets and a weaker US dollar has resulted in gold and silver rising. The long term technical supports have been held in both gold and silver which has resulted in greater investment demand at lower levels. Gold and silver will rise further but expect greater volatility over the next few weeks as day traders have burned their fingers and they will tread cautiously going ahead. There are huge long positions at higher levels and at every rise some of the investors will exit which will result in price correction. Investors will not get carried away and be over optimistic not just in commodities but in every financial instrument.
Fundamentally gold and silver are bullish with exchange traded funds being launched in every country. Risk aversion away from the US dollar should result in gold and silver breaking 2006’s highs in 2007. Globally interest rates are stable and the further upside in global interest rates remain limited. Liquidity will also remain stable but will remain vulnerable to equity shocks. Last weeks fall in global stock markets is the next best thing to have happened for commodity investment. The amount invested in commodities is pea nuts as compared to the amount invested in equities. After last weeks stock debacle mor and more hard core stock investors have started switching their investment into precious metals and commodities.
GOLD -- APRIL FUTURE
Gold needs breaks $650 for further gains to $659 and $672. On the lower side $639.10 and $628.80 are the key support levels.
SILVER -- MAYFUTURE
Silver targets $1412 and $1480 if it is able to hold $1310. On the lower side $1255 and 1183 are the key support levels.
Happy Profitable Trading
For sms and messenger support free 7 days trial, mail at sms@insigniaindia.com
Disclaimer : Any opinions as to the commentary, market information, and future direction of
prices of specific currencies, precious metals, base metals, or equity indices reflect the views
of the individual analyst, In no event shall Insignia Consultants or its employeeshave any liability
for any losses incurred in connection with any decision made, action or inaction taken by any
partyin reliance upon the information provided in this material; or in any delays, inaccuracies,
1080-81, Ugger Sen Street,”Somani Bhawan”
Sita Ram Bazar, New Delhi-110006. India.
Ph: [O] 91-11-30919880 [M] 09811139549
Website: www.insigniaindia.com
Email: chintan@insigniaindia.com
The content on this site is protected
by U.S. and international copyright laws and is the property of GoldSeek.com
and/or the providers of the content under license. By "content" we mean any
information, mode of expression, or other materials and services found on GoldSeek.com.
This includes editorials, news, our writings, graphics, and any and all other
features found on the site. Please contact
us for any further information.
Live GoldSeek Visitor Map | Disclaimer
The views contained here may not represent the views of GoldSeek.com, Gold Seek LLC, its affiliates or advertisers. GoldSeek.com, Gold Seek LLC makes no representation, warranty or guarantee as to the accuracy
or completeness of the information (including news, editorials, prices, statistics,
analyses and the like) provided through its service. Any copying, reproduction
and/or redistribution of any of the documents, data, content or materials contained
on or within this website, without the express written consent of GoldSeek.com, Gold Seek LLC,
is strictly prohibited. In no event shall GoldSeek.com, Gold Seek LLC or its affiliates be
liable to any person for any decision made or action taken in reliance upon
the information provided herein.
