-- Posted Thursday, 9 April 2009 | Digg This Article
| Source: GoldSeek.com
GENERAL MARKET CONDITIONS/FUNDAMENTAL FACTOR
Federal Reserve officials feared the U.S. economy might fall into a self-reinforcing cycle of rising unemployment and slumping business and consumer spending, making credit tighter in a weak financial system, minutes of the Federal Reserve’s March meeting show. Credit conditions remained very tight, and financial markets remained fragile and unsettled, with pressures on financial institutions generally intensifying.
Investors are trying to figure out whether ever-expanding rescue programs are moving fast enough to keep up with a rapidly deteriorating world economy, and that confusion is reflected in seesawing stock markets. US jobless could reach the double digit mark over the coming months. Then why is gold not rising? The worst of the global economic doom has been factored in by the markets and traders believe that the only direction for the global economy is either to stabilize or rise. Gold will rise in a big way when investors are proved wrong. There is still firing news from various companies with the latest being RBS. Economic numbers of almost all the countries are not that great. Central banks are solely relying on monetary easing and liquidity injection techniques to get over the current economic downside. This method will take a longer time than expected to give results. Investors will loose their patience by that time and safe havens like gold will once again start to rise quickly.
Physical demand for gold and silver will remain firm in India. The Indian marriage season starts next week. Jewelry demand in Indian will rise over the next two months. Even higher gold prices may not come in gold jewelry demand as those who are getting married will buy gold.
TECHNICAL VIEW
NYMEX CRUDE OIL (1ST CONTRACT)
Crude will break free from the $46-$56 range in the next ten days and form a new range. We remain positive on crude oil and will prefer a buy on sharp dips strategy with a stop loss below $43. Intra day crude oil needs to break $53 for gains.
DISCLOSURE: NO POSITIONS
THIS IS JUST AN EXCERPT OF THE FULL REPORT
HAVE A GREAT EASTERS AND MINI VACATIONS
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 Thursday, 9 April 2009 | Digg This Article | Source: GoldSeek.com
