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-- Posted Wednesday, 8 October 2008 | Digg This Article | Source: GoldSeek.com

GENERAL MARKET CONDITIONS/FUNDAMENTAL FACTOR

Interest rate cuts are always bullish for precious metals. Federal Reserve Chairman Bernanke signaled that the Fed is ready to lower interest rates as the credit freeze poses an escalating danger to the US economy. The world financial system is under ``extraordinary stress'' and history shows that severe instability ``can take a heavy toll on the broader economy if left unchecked,'' Bernanke said in a speech in Washington. ``The Federal Reserve will need to consider whether the current stance of policy remains appropriate.''  This is a clear signal that the Federal Reserve may cut interest rates even before the scheduled meeting on 29^th October, 2008. There is speculation that bank of England may cut interest rates half a percentage tomorrow.

Fed said that it would buy short-term debt from banks and corporations in an unprecedented attempt to unfreeze money markets. The Fed is trying to buy everything. How will it continue to buy crap debt from the money markets?

Commonwealth Bank of Australia, Australia’s biggest provider of mortgages, agreed to buy HBOS Plc's Australian units for A$2.1 billion ($1.5 billion) as the troubled U.K. bank sells assets amid the global credit crisis. Credit woes spreading to Australia has justified Australian central bank’s one percent interest rate cut.

COMEX GOLD DECEMBER

For the rest of October gold has to break $960 for gains. If gold fails to break $960 in October then it will fall to $788 and $740 once again. This is a just the technical picture.

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 Wednesday, 8 October 2008 | Digg This Article | Source: GoldSeek.com

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