-- Posted Tuesday, 12 May 2009 | Digg This Article | | Source: GoldSeek.com
GENERAL MARKET CONDITIONS/FUNDAMENTAL FACTOR
European central bank president Jean-Claude Trichet signalled that the global downturn had bottomed out with some large economies already able to put the recession behind them and look forward to renewed growth. His comments had added weight because he was speaking on behalf of the world’s leading central bankers, not just for the eurozone. Not new comments as global financial markets have already factored in this view.
Federal Reserve Chairman Ben S. Bernanke said he’s encouraged by U.S. banks’ plans to raise capital after government stress tests and indicated firms need to conduct further internal exams to identify other risks. The banks, especially those with “trading and investment banking businesses,” should keep monitoring “operational, liquidity and reputational risks,” which weren’t addressed by the exam concluded last week. We all know that all balance sheets of all the US banks have been window dressed to show a rosy and bright picture. The banking industry is the foundation of the global economy and any collapse of the global banking system will lead to the world economy turning upside down. The Fed and other central bankers have done the right thing. However the culprits have been left unscathed. In the long term this will lead to steep rise in global protectionism and big spikes in safe havens.
Gold is trading in a narrow $15 range. This range will be broken in the next three days and a new range will be formed.
TECHNICAL VIEW
COMEX GOLD JUNE
As long as gold holds $900 it will target $924 and $947. Intra day sellers 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 employeeshave 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, 12 May 2009 | Digg This Article | Source: GoldSeek.com
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