Equity investors must be a nervous lot as the Dow Jones falls by 200 points one day only to rise by 400 points the next. August so far has been a choppy run for the equity markets as well the commodity markets. It’s a liquidity driven market in the medium term. There are concerns that the US sub prime losses could spread into other countries and create a global liquidity crunch. In our view, this may not happen as global equity markets have to rise in order to maintain strong global growth. None of the central banks would like to see a bear run in the stock markets. Central banks would use a combination of measures that will ensure that stock markets keep on rising and inflation remains low. There is only one cause of concern and that is central banks are using currency appreciation to side over crude oil induced inflation which will impact their economy over the coming quarters.
The US economy is slowing down. Nothing official about it! Asia (ex Japan) and other emerging nations will be mover of global growth in the next decade. A US slowdown will result in short term correction in base metal prices while maintaining the fundamental bullishness intact.India and China itself have a decade for growth.Gold and silver may fall in the short term as and when liquidity pressures prevail but will rise in the long term.
Gold and silver have been sandwiched the crude oil and the US dollar which will continue for the rest of the day. Markets will also be looking forward to the Fed for direction. Expect higher volatility to continue for the rest of the day.
SILVER -- SEPTEMBER FUTURE
Silver needs break and hold $1307 to target $1333 and $1354. On the lower side $1294 and $1277 are the key supports.
COPPER -- SEPTEMBER
100 day MA at $138.40 is the key support and a consolidated fall below $327.60 and $315.30. Needs to break $350.60 to be in uptrend for $362.40.
NYMEX CRUDE OIL -- AUGUST FUTURE
Crude oil has to float over $72.15 to prevent a slide to $69.80 and $66.80. On the higher side $75.60 is the initial resistance with $77.50 and $79.50 as the key resistances.
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,
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
