Most of the Central bankers are using the foreign exchange markets for their cause. European Central Bank (ECB), bank of England (BoE) remain unconcerned about the rapid rise. ECB and Bank of England like other central banks are concerned only of controlling inflation without impairing growth and currency appreciation is the best measure for the same. The Fed in US needs a weaker US dollar to stimulate export led economic recovery for which they are letting the US dollar depreciate. On paper the central bank chiefs say they want reduce the carry trade. But the meaning is just the opposite. In the short term, they may be successful in achieving their objectives. However in the medium term to long term, these move will have a greater adverse impact in the form if rising current account deficit, a sort of cat and dog play over the fair value of currency and protectionism. Gold and precious metals are and will be best beneficiary of the same.
Carry trades will continue to support gold, silver and metal prices. Silver and copper May future expiry will result in widening of spreads between May and July series.Silver has not gained as much as gold and copper for the past two weeks. At the moment there is direct correlation between equity markets and commodity prices which will continue this week also.
GOLD -- JUNE FUTURE
Gold needs to break $707.10 for $715 and $715. On the lower side $690.50 is the initial support with $682.10 as the key support.
SILVER -- MAYFUTURE
Silver needs to break $1431 for $1500. On the lower side $1387 is the initial support with $1367 as the key support.
Happy Profitable Trading
Services provided: SMS service on MCX, NCDEX and Comex Metals and Energies, Daily Reports, Weekly Reports and Monthly Reports. In India we also provide hedging strategies to industrial user on precious metals and base metals.Please visit our new website www.insigniaconsultants.infor details.
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.
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
