-- Posted Tuesday, 29 September 2009 | Digg This Article | | Source: GoldSeek.com

GENERAL MARKET CONDITIONS/FUNDAMENTAL FACTOR

Commodities rose along with equities suggesting an increase in risk appetite by investors. I am pretty positive about commodities going into October and will investment in small lots (in all metals and crude oil) at the current prices and on every seven percent to eight percent dip for the long term (Till May/June 2010). Some of you may disagree with me, but I believe that as long as global liquidity does not reduce and/or interest rates are not raised investment demand for risky assets like commodities will always increase. Regulation by governments on the commodity trade will only reduce the pace of rise but not alter the long term bullish trend in commodities. Governments and central banks cannot change the fundamentals of commodities which will remain in short supply with the passing of each year. Global commodity trade is not India where they close the trading of any particular commodity abruptly without any genuine reason.

In India we have the Air-India pilots (the national air carrier) strikes right now. Previously it was the jet airways pilots strike. Air travel in India will soon become the back bone of Indian economy. If airlines are grounded for useless reasons and recur frequently then forget about Indian GDP growth over 6.50% in the current fiscal 2009-2010. The government has to consider changing hiring and firing norms for all sectors of the economy and balance it in a way that both business interest as well as workers interest are protected.

Gold and silver are consolidating at the moment before the next higher. Silver looks slightly bearish but I will keep my fingers crossed. Copper and crude oil need to trade over key medium term support for further gains.

TECHNICAL VIEW

COMEX GOLD DECEMBER

Gold now needs to hold $983 to prevent another round of selling to the $960-$965 zone. On the higher side $1008 and $1021 are the resistances.

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

For further clarifications on this report call 91-9312335649 (Mr.Chintan Karnani)

-- Posted Tuesday, 29 September 2009 | Digg This Article | Source: GoldSeek.com

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