-- Posted Tuesday, 26 August 2008 | Digg This Article
| Source: GoldSeek.com
GENERAL MARKET CONDITIONS/FUNDAMENTAL FACTOR
One should enjoy the consolidation days in metals and energies. Consolidation days with very low volatility have become scarce these days. Its also suggests the command the UK has over all foreign exchange markets and commodity markets. Once again the US dollar and crude oil prices will be the key to all commodities. Base metals should remain firm/rise as Chinese demand picks up. Markets will be looking forward to the FOMC minutes for direction today.
Pit trading is closed in US on Monday (1st September) due to Labor Day. Volumes will fall as the week progresses. There will be position squaring and rebuilding ahead of the holiday. Traders will also be taking positions for the US non farm payrolls on 5th September. All these will only increase the volatility for the weeks ahead.
Zinc, lead and Nickel can rise on month end short covering. China will open slowly its factories which were closed due to Olympics which will result in greater demand for these metals and firm prices. Technically also these metals are in medium term oversold zone. Physical demand of gold and silver will remain firm and premiums will also remain high.
LME COPPER (3 MONTHS)
Copper has to break the $7800-$8000 zone for $8450. Sellers will emerge this week only if copper falls below $7625.
Disclaimer: Any opinions as to the commentary, market information, and future direction of prices of specific currencies, metals and commodities 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.
Prepared By Chintan Karnani. Website www.insigniaconsultants.in
-- Posted Tuesday, 26 August 2008 | Digg This Article | Source: GoldSeek.com
