Asian Metals Market Update for 2nd September, 2008
By: Chintan Karnani, Insignia Consultants
-- Posted Tuesday, 2 September 2008 | Digg This Article | Source: GoldSeek.com
GENERAL MARKET CONDITIONS/FUNDAMENTAL FACTOR
Yesterdays fall in crude oil prices is a case of “buy the rumour sell the fact” as hurricane Gustav did not live up to expectations. The fall in crude oil prices resulted in gains in the US dollar and precious metals and base metals selling off. Volumes were below par yesterday so the fall in precious metals can be ignored. If they fall today then it will be lasting. There will be position squaring and rebuilding before the US non farm payroll numbers on Friday.
For the whole of September the key to the US dollar’s movement will be growth differentials between the US and other regions. The US dollar has gained as growth differentials have narrowed. If growth differentials narrow further then the US dollar will gain and put further downside pressure on energies. If crude oil prices fall further before the Opec meeting then Opec will resort to production cuts to prevent prices from falling.
COMEX COPPER DECEMBER
Copper needs to hold the $326-$332 zone to be in bullish zone and target $346 and $355 once again. Only a fall below $332 will result in another round of selling to $319.
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 employeeshave 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, 2 September 2008 | Digg This Article | Source: GoldSeek.com
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