-- Posted Thursday, 7 May 2009 | Digg This Article | Source: GoldSeek.com

GENERAL MARKET CONDITIONS/FUNDAMENTAL FACTOR

Commodities and equity markets all rose simultaneously yesterday for the first time this year. This is clearly an indication of greater investment demand in commodities by fund managers and retail investors. There is more confidence in the mindset of investors that global economic recovery is on the way soon and that it may have bottomed out. A weaker US dollar is also supporting commodities. We believe that another short term bull run in commodities has begun (like we had seen in the first half of 2008) and will continue at least for the next three to four months. I am optimistic about the current bull run. All the super excess money which central banks have been printing over the past one year will sooner or later find themselves in commodities and equities and sooner than later into real estate.

For a long term investor (3-5 year time) real estate, gold, silver and emerging market stocks are my picks. For the short term investor (4-6 months) equities, silver and energies may give higher returns that gold or any other investment.

There will be position squaring and rebuilding ahead of the results of the US bank stress test and US April payrolls. We believe that the  US April non farm payrolls will not have any long lasting impact on the markets. 

TECHNICAL VIEW

COMEX GOLD JUNE

As long as gold holds $900 it will target $924 and $947. The intra day seller will be there below $898.

DISCLOSURE: NO POSITIONS

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, 7 May 2009 | Digg This Article | Source: GoldSeek.com

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