-- Posted Monday, 23 November 2009 | Digg This Article | | Source: GoldSeek.com

DAILY COMEX REPORT

GENERAL MARKET CONDITIONS/FUNDAMENTAL FACTOR

Gold and silver have been delinked from the US dollar. Gold is showing signs of a currency status which implies that gold will continue to rise without any major corrections. Short positions are getting converted into long positions and more and more short term hot money is getting poured into gold. I have been asked over the past few weeks as to what could be gold’s top. In the next six months as long as gold holds $1012.22 on weekly closing basis it will target $1499 and $1632. Silver is every green, I have always remained bullish on silver and now expect $2153 to be reached in the short term (1-2 weeks) and $2608 in the medium term (2-3 months) as long as $1535 holds. Crude oil can rise to $84.68 in the short term (1-2 weeks) and $125.80 (4-6 months) as long as $73.53 holds. Only a weekly close below $73.53 will alter the bullish run in crude oil. Copper can rise to $337.40 in the short term and $364 in the medium term as long as $284.20 holds. However fundamentally everything is bearish and commodities are a case of too much money chasing too few goods. Commodities are not in a bubble zone but if they continue to rise till June 2010 without any short term bear phases then they will be in bubble territory. If commodities enter a bubble zone then central banks may not be able control this time as they may have run out of measures.  

Central banks dilemma is growth versus inflation. Interest rates are at a near bottom. Liquidity is still very high across every nation in the globe. Higher commodities have a tendency to ransom any country’s economy. If commodities continue to rise then consumers expenditure on essentials will rise and there will be lower expenses on durable goods and lower expenses in the tertiary sector. The multiplier expectation of a sustained and continuous rise in commodities which if it happens in 2010 will result in central banks scampering for measures to prevent their economies from sinking. Please note that commodity prices includes prices of agro commodities such as sugar wheat etc. Higher gold prices do not affect the man on the street. But higher prices of food affect everybody. We all know that the currently over twenty percent rise in current commodity prices is due to investment demand or speculation.

TECHNICAL VIEW

COMEX GOLD DECEMBER

Gold targets $1172 and $1199.40 as long as it trades over $1140.60 and $1133.50.

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)

Yahoo chat: chintan342@yahoo.co.in

-- Posted Monday, 23 November 2009 | Digg This Article | Source: GoldSeek.com

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