-- Posted Monday, 17 August 2009 | Digg This Article | | Source: GoldSeek.com

GENERAL MARKET CONDITIONS/FUNDAMENTAL FACTOR

The US dollar and equity markets continue to dictate commodities. Fundamentally gold and silver are still bearish. There is a lack of demand in gold and silver from India and other major consumers. Investors expect Indian gold and silver to start to pick up as we near the festival season. Demand will be there but it will be muted if prices continue to rise. Any fall in prices will only result in higher physical off take in gold and silver in India.  

As far as base metals are concerned, physical demand is not that high. They are rising on expectations that (A) Chinese demand will continue to rise and (B) Imports from USA will start to pick up and rise continuously. In my view we need to wait and watch for a few days and see if base metals are able to continue their rally. I expect further correction in base metals before the next leg higher.

TECHNICAL VIEW

COMEX GOLD DECEMBER

Repeated failed attempts to break $975 has resulted in gold falling and it may fall to the $926-$930 zone. Below $926 then $911 and $904.

Intra day buyers will be there only on a consolidated break of $954.

NYMEX CRUDE OIL (1^ST CONTRACT)

For the past two months crude oil has failed unlimited times to break $73-$74 and can now fall to $61.50 and $58.50 before the next leg higher.

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 Monday, 17 August 2009 | Digg This Article | Source: GoldSeek.com

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