-- Posted Friday, 24 July 2009 | Digg This Article
| | Source: GoldSeek.com
GENERAL MARKET CONDITIONS/FUNDAMENTAL FACTOR
Once again the US dollar affects more to gold, silver and copper than equity markets as euro/usd rose to 1.4291 before falling. This resulted in gold, silver and copper unable to hold on to yesterday’s gains. Crude oil continues to show no signs of abatement tracking the stock markets. Yesterday in the US session gold, silver and copper were finding sellers at higher prices on profit taking. Fundamentals are still bearish for gold, silver, copper and crude oil. Demand for gold and silver is virtually nil while Chinese copper demand is supporting copper. Energy gains are purely speculative plays backed without any fundamentals.
Moves by governments and regulators to shore up banking systems and financial markets risked a push towards financial protectionism, leading bankers warned. The bankers, who included senior officials at Deutsche Bank, JPMorgan, Spain’s BBVA and Sweden’s SEB, said they supported “far-reaching” regulatory reforms including changes to pay practices across banks and tougher capital requirements. However, in a report on the future of financial regulation, they voiced concern about swift moves to change rules in the UK and the US that would include curbs on risky compensation practices.
In my view states are trying to dictate the financial markets as per their whims and fancy which could cripple this market in the long term. We all know that global financial integration (due to better technology) affects every country. A major change in the financial markets of one country affects the financial markets of every country, although the degree may vary. Central bankers now want stabilization as they run out of measures to tackle growth with creating asset bubbles (In the long term). The net result is that even intra day movement could be dictated by them. Gold will be the winner.
The rise in commodities could be capped unless they break and hold over key technical resistances.
TECHNICAL VIEW
COMEX GOLD AUGUST
A close below $951 will put gold in a neutral zone while a close over $951 will result in $959 and $966. Intra day there will be sellers as long as gold does not break $951-$955 zone.
$947-$955 is a neutral zone. Below $947 then $943 and $936.
COMEX COPPER SEPTEMBER
Copper now needs to break $256-$258 zone else there will be profit taking to $243 and below.
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 Friday, 24 July 2009 | Digg This Article | Source: GoldSeek.com
