-- Posted Wednesday, 24 September 2008 | Digg This Article
| Source: GoldSeek.com
GENERAL MARKET CONDITIONS/FUNDAMENTAL FACTOR
Yesterday gold was trading from $890-$909 for most of the day and once it failed to break $910 sellers emerged. The US financials bail out package by the US congress is still in lingo. The US dollar will gain if the bail out package is passed in totality. If there are modifications to the same then we will need to reassess the same. The US dollars weakness will be limited as it benefits from a near recession situation in Eurozone and other rich nations.
GOLD ETF INVESMENTS AT A RECORD HIGH.
Investors in gold-backed exchange-traded funds (ETFs) have amassed a record 1,039.68 tonnes of bullion, becoming the largest holders of gold after the reserves of the US, Germany, the International Monetary Fund, Italy, France and Switzerland. The purchases partly reflect concerns over the health of US financial institutions and safe-haven buying spurred by a weakening dollar.
Investors’ bullion assets have risen by 31 per cent in the past 12 months and have almost doubled since September 2006, according to statistics compiled by the industry-backed World Gold Council. The world’s largest bullion-backed ETF, the New York-listed SPDR Gold Trust, saw a 30.2 tonnes inflow on Monday, bringing its holdings to an all-time high of 709.2 tonnes.
Our view: Investment demand in Gold ETFs can change anytime with change in investor’s preference. Investment demand in gold ETFs will fall as and when the sentiment in equities changes from negative to positive. Further there has been an inverse correlation between gold ETF demand and physical demand.
COMEX SILVER DECEMBER
View till next week: If silver fails to break $1410 by next week (3rd October, 2008) then silver will fall to $1215 and $1044 first.
THIS IS JUST AN EXCERPT OF THE MAIN REPORT.
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 Wednesday, 24 September 2008 | Digg This Article | Source: GoldSeek.com
