-- Posted Tuesday, 7 October 2008 | Digg This Article | Source: GoldSeek.com

GENERAL MARKET CONDITIONS/FUNDAMENTAL FACTOR

Whenever gold rises sharply all of a sudden, my clients ask me which bank has been busted. This is the lack of confidence in equity markets. Safe haven demand and risk aversion is supporting gold. The US dollar tensions benefits from credit crisis in Europe and other developed nations. Global stock markets continue to fall on the back of uncertainties and whether central banks decisions to tackle the credit woes will work or not. All I can comment is that the measures take by the various central banks will take time to have a trickle down effect. There is no need to panic for the investor. It is difficult to search for a bottom. But a bottom should be formed sooner. Investors should sit on cash and invest for the long term in equities a well.

This is just a passing phase which may last another quarter before things stabilize and equities start to rise. It’s not all gloom and doom for equities. As far as precious metals are concerned, the long term bullishness is intact. Volatility will rise with average intra day volatility in gold rising to $60. Day traders need to get nightmares. They need to make the most of the volatility use a combination of technical levels and momentum. If one trades against the momentum then stop losses will be useless and things happen all of a sudden without giving you time to react.

COMEX SILVER DECEMBER

Silver should break free from the recent consolidation phase and needs to break $1216 or fall below $1076 for direction. Below $1076 the key support is at $1023 and $980.

This is just an excerpt of the main report. For intra day calls on commodities and currencies call 9311139549 or add chintan342 to ur yahoo id.

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, 7 October 2008 | Digg This Article | Source: GoldSeek.com

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