Latest Headlines

Search

-- Posted Monday, 21 July 2008 | Digg This Article | Source: GoldSeek.com

INSIGNIA CONSULTANTS

Asian Metals Market Update for 21st July, 2008

GENERAL MARKET CONDITIONS

I was in Chennai at the “1st India Gold Conclave” last Saturday. Some of the jewellers who attended the conference said that the commodity exchanges have only added to their woes and that the recent price volatility in gold is due to the commodity exchange. In my view this view of theirs is baseless. (A) The commodity exchanges have given them a platform to hedge their risk against future price rise and fluctuations. (B) Jewellers have to differentiate between hedging and speculation. If they do not differentiate between the two then losses may or may not be there. Speculation may or may not give profits. Hedging is a means to reduce loss and not to make a profit. (C) Indian gold prices are affected on a combination of international factors and the US – Indian rupee rates. In 2007, the rupee gained from 43.30 to 42.90 against the US dollar and jewellers benefited. They were not complaining at that time. Why Now?

The US dollar will be volatile. If remains to be seen how long it is able to hold on to the gains. A short term top should be formed this week. If the UK and the Eurozone show signs of moving into recession or slowdown the US dollar will gain as most of the bad news on the US economy. Once again crude oil will be the key factor for the US dollar apart from economic numbers.

COPPER -- SEPTEMBER FUTURE

200 day MA around $354 is the key support. Resistance is at 100 day MA around $378.

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 Monday, 21 July 2008 | Digg This Article | Source: GoldSeek.com

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 - 2009

Disclaimer