Asian Metals Market Update for 17th december, 2008
By: Chintan Karnani, Insignia Consultants
-- Posted Wednesday, 17 December 2008 | Digg This Article | Source: GoldSeek.com
GENERAL MARKET CONDITIONS/FUNDAMENTAL FACTOR
The Federal Reserve has surprised the markets by cutting interest rates by 0.75% to 0.25%. In a historic statement, the US central bank said it would target a record low interest rate, expressed as a range of between zero and 0.25 per cent. It said it expected to keep rates at ultra-low levels “for some time” and vowed to use “all available tools to promote the resumption of sustainable growth and to preserve price stability”.The Fed said it “stands ready” to step up its planned purchases of securities issued by Fannie Mae and Freddie Mac, the mortgage giants now under government control. It also said it was “evaluating the potential benefits of purchasing longer-term Treasury securities”.
The Fed is sending a message that it will print money to an unlimited extent until it starts to see the economy expanding. This is very positive for gold and silver in the medium term to long term. The big question will be how long interest rates hover around zero in 2009.
TODAY
It will be a technical trade at the moment and gold and silver are bullish technically. Today’s close is very important for gold and silver. Copper and other base metals will be volatile. LME copper (3 months) is holding $2900/tonne and needs to hold the same to prevent round of selling to $2700. Crude oil we prefer a sell on sharp rise strategy till $50 is not broken.
COMEX SILVER MARCH
$1108 price target achieved. Silver now needs to hold $1108 to target $1220 in the short term. On the lower side sellers will emerge only on a fall below $1085.
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, 17 December 2008 | Digg This Article | Source: GoldSeek.com
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