Last week the Euro rose to its highest level in 2007 against the US dollar. Expectation that the European central bank (ECB) will raise interest rates one more time and a robust Eurozone economy is supporting the Euro. US dollar is trading with a weaker bias against the major currencies after sub prime mortgage collapse could slowdown the US economy. Euro is headed higher and could rise to 1.3512 and further if there is evidence that US economic growth will be slower. A weaker US dollar is bullion supportive.
China raised interest rates for the third time in 11 months to curb inflation and reduce asset bubbles in the world's fastest-growing major economy. The one-year benchmark lending rate has been raised to 6.39&, its highest in almost eight years, from 6.12%. The one-year deposit rate will be increased to 2.79& from 2.52%. Central bank Governor Zhou Xiaochuan is concerned that cash from a record trade surplus is stoking excess investment, raising the risk of accelerating inflation and boom-and-bust cycles in asset prices. The big question is whether China will succeed in slowing down its economy. If Chinese economy show sustained slowdown then copper and other base metal prices could fall.
This week markets will be looking forward to the Fed meeting and technical factors for a directional call in gold and silver. Gold and jewellery demand from India will rise from this week all the way into end June with the arrivals of Navratras. In April some more gold Exchange Traded Funds (ETF) are being launched in India which will result in even greater demand.
GOLD -- APRIL FUTURE
Gold needs to beak $663.70 for $676 and $692.00. On the lower side $643.10 is the key weekly support.
SILVER -- MAYFUTURE
Silver needs to break $1339 for $1370 and $1412. On the lower side as long as $1290 is the key weekly support.
Happy Profitable Trading
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,
errors in, or omissions of Information.
Prepared By Chintan Karnani. Web Site:www.insigniaindia.com
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.
Disclaimer
The views contained here may not represent the views of GoldSeek.com, its affiliates or advertisers. GoldSeek.com 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,
is strictly prohibited. In no event shall GoldSeek.com or its affiliates be
liable to any person for any decision made or action taken in reliance upon
the information provided herein.
OilSeek.com
