-- Posted Thursday, 5 November 2009 | Digg This Article
| | Source: GoldSeek.com
GENERAL MARKET CONDITIONS/FUNDAMENTAL FACTOR
Gold and silver fell on profit taking after the Fed meeting. The Federal Reserve repeated it will keep interest rates near zero for “an extended period” and specified for the first time that policy will stay unchanged as long as inflation expectations are stable and unemployment fails to decline. In the future if the US economy continues to grow positively then the Fed will change its interest rate outlook quickly. I do not expect the Fed to raise interest rates in the first half of 2010. There may be some liquidity removal measures first but the same will not happen this year.
A House bill to curb credit-card rates spurred concern about bank earnings. This is the best things which US politicians are doing for the masses. Credit card interest rates (specially on late payments) are too high. This should have a positive effect on the US economy in the longer term.
I do not expect any surprises from the European central bank meeting or the bank of England meeting.
TECHNICAL VIEW
COMEX SILVER DECEMBER
Silver needs to float over $1730 to be in intra day bullish zone with $1777 as the resistance. However sharp corrections should be used as an opportunity to go long.
COMEX COPPER DECEMBER
Copper is consolidating in $286-$305 zone and will break free from this zone soon for $321/268 as the case may be. Intra day copper needs to float over $303 for further gains.
MCX SILVER DECEMBER
In the short term as long Rs.25450 holds there is every possibility of Rs.28560 and Rs.29880. Intra day silver is bullish over Rs.26980.
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
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-- Posted Thursday, 5 November 2009 | Digg This Article | Source: GoldSeek.com
