-- Posted Monday, 28 September 2009 | Digg This Article | | Source: GoldSeek.com

GENERAL MARKET CONDITIONS/FUNDAMENTAL FACTOR

It’s been a steady opening for gold, silver, copper and crude oil after the G20 meeting. The US dollar has gained against the euro and pound. There will be position squaring and rebuilding in all commodities for the fourth quarter. US September non farm payrolls will be the key on Friday. So far the correction (from the highs) in gold, silver and crude oil is just a technical correction which if it continues will mark the beginning of a short term bear phase and long term investment opportunity. Base metals and energies should perform positively in the fourth quarter as the global economy continues to maintain its current uptrend.

Traders and investors have started taking positions on interest rates. In my view the fed may raise interest rates as early as March 2010 but not later than June 2010. Higher commodities prices have a lagging effect and the third quarter’s rise in commodity prices by way of higher inflation will be felt by December 2009 or January 2010 which will force central banks to focus on inflation reduction measures. Lower base effect will also add to inflation.

 TECHNICAL VIEW

COMEX COPPER DECEMBER

Copper needs to close over $264 to prevent a fall to $248 and $232 next week. Intra day there will be sellers below $267. Resistances are at $277 and $283.

NYMEX CRUDE OIL (1^ST CONTRACT)

Crude needs to break the 100 day moving average of $67.09 to prevent a fall to $64.30 and $63.30. A fresh wave of selling will be there below $64.80 for $63.80 and $62.10.

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, 28 September 2009 | Digg This Article | Source: GoldSeek.com

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