Gold and silver zoomed as the Fed cut discount rates by 0.25% to 3.25% on direct loans and announced a new program to lend directly to other big financial firms. Goldman agreeing to buy Bear Stearns for $2 a share against the price of $30 a share at the close on 14th March also factored in. Stock investors are getting jittery over their investments. Some of them who panic are reducing exposure in equities and increasing energies and the unstoppable rise in precious metals. The Fed is trying its best to prevent a financial collapse in the US. Unless global financial markets stabilize precious metals will continue to rise without any major correction.
I was asked by one of my clients recently whether all the money from equities has moved into precious metals and energies. As per our estimates not even twenty percent of the global equity investment has moved into precious metals energies. If all the money moves away from equities into precious metals, gold would have been at $2000 and silver at $40.00.
It will be a news driven and highly volatile week. Base metals are caught between liquidity pressures and continued falling LME inventories.
COPPER -- MAY FUTURE -- INTRA DAY PIVOT: $372.
Copper has to break $392 or hold $372 for direction.
NYMEX CRUDE OIL --FUTURE -- INTRA DAY PIVOT: $106.0
If crude oil fails to break $112-$114 this week then it will fall back to $106 and $100.0
HAPPY PROFITABLE TRADING
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-- Posted Monday, 17 March 2008 | Digg This Article | Source: GoldSeek.com
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