-- Posted Wednesday, 4 June 2008 | Digg This Article | Source: GoldSeek.com

INSIGNIA CONSULTANTS
Asian Metals Market Update for 4th June, 2008
EXPECTED TRADING RANGE
GOLD AUG 08   -- $870.0 -- $909.00	SILVER  JULY 08  -- $1620.0 - $1760.00
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GENERAL MARKET CONDITIONS
I am starting to enjoy the frankness of Fed chairman Ben Bernanke as he said that the Fed is paying close attention to the foreign exchange markets and the decline of the dollar, because of its implications for U.S. growth and inflation. The downward pressures on the dollar has contributed to the unwelcome rise in import prices and consumer price inflation. In January he had explicitly admitted that the US is nearing recession. It’s too early to comment whether the US dollar has bottomed out for the rest of the year. We need to look at the second round effects of higher food and energy prices on US consumer spending as well as global consumer spending. The US dollar will gain if and only if the US economy shows signs of stabilisation. A stable interest rate regime will promote carry trade and could be positive for stock markets till September.
Commodities can fall in the short term due to liquidation of long positions by fund managers after the Bernanke statement. In the medium term to long term, fundamentals will take over and a new high should be formed. Commodities will be delinked from the US dollar and movement in other financial instruments. The only risk to commodity prices in the long term is a sustained global slowdown.
SILVER -- JULY  FUTURE
Silver has to break $1713 else it will trade in a wider $1620-$1713 zone. A break of $1713 will result in $1754 and $1780.
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 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.
Nothing in this article is, or should be construed as, investment advice.

-- Posted Wednesday, 4 June 2008 | Digg This Article | Source: GoldSeek.com

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