-- Posted Wednesday, 27 June 2007 | Digg This Article

GENERAL MARKET CONDITIONS

Mild Unwinding of yen carry trade resulted in technical break down in silver and gold which triggered stop losses. Silver fell like a pack of cards in its true style. Silver has the tendency to rise as well fall sharply on its day and if one caught on the wrong side of the trade stop losses may not be triggered.  Silver bears have been successful as July future is closing this week and a large numbers of low risk traders and investor were forced to square off their long positions. Gold also fell but was better off than silver. Copper also fell marginally but was supported by partial strike by mine workers in Peru.   It is not just the Fed meeting but also rise in treasuries which caused the fall. Investors are buying more treasuries as a resulted on the bear sterns fall out. They are scared that more could some up in the collateral debt market which could impact the US economy. This has resulted in aversion in favour of treasuries.   There has been a delinking between commodities and currency markets and equity markets. This will continue. It’s case of gold and silver versus alternate investments which have no holding cost. Geopolitical risk are not in the headlines with North Korea agreeing to dismantle its nuclear programme. Iranian diplomacy continues. Physical demand in India will rise multi gold as prices near INR 8500 per ten grams. There are investors who are waiting to buy physical gold as when price near INR 8500 and below. Expect higher volatility and if gold and silver manage  to hold yesterday low, we may have bottomed out.

COPPER -- SEPTEMBER FUTURE

Copper needs to float over $331.60 to prevent further losses to $327.30 and $321.30. $307.60 is the key medium term support. Resistance is between $340-$344.

Happy Profitable Trading

FOR ACTUAL AND FULL REPORTS please register on our new website www.insigniaconsultants.in  for a free  trial service for an indepth analysis on metals and energies along with intra day and positional trading calls on MCX. NCDEX and COMEX and other INTERNATIONAL markets. SMS on Mobiles, FAX and MESSENGER service also available.

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 employees  have any liability

for any losses incurred in connection with any decision made, action or inaction taken by any

party  in reliance upon the information provided in this material; or in any delays, inaccuracies,

errors in, or omissions of Information.

-- Posted Wednesday, 27 June 2007 | Digg This Article

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

Previous Articles by Chintan Karnani, Insignia Consultants

© 1995 - 2019

Live GoldSeek Visitor Map | Disclaimer