-- Posted Monday, 30 November 2009 | Digg This Article
| | Source: GoldSeek.com
GENERAL MARKET CONDITIONS/FUNDAMENTAL FACTOR
Gold and all the commodities rose, the US dollar weakened as the United Arab Emirates’ central bank eased credit for lenders and said it “stands behind” the country’s local and foreign banks as they face losses from Dubai World’s possible default. We had a US housing market breakdown in 2007. Initially once the news broke off nothing happened, there was a small stock markets slide followed by an even greater stock market rise in the following three months after the first news of US housing problems surfaced. After three months we had global stock markets sinking and it seemed that the bottom was no where near. The rest is history. It’s prudent not to ignore the Dubai debt default scheme over the coming months and if there is any further confirmation of it spreading across nations and continents then one should book his profits in commodities and equities and once again reinvest after the fall.
For the time being everything looks bullish and as long as the US dollar continues to weaken commodities and stock markets will rise. There will be position squaring and rebuilding before the European central bank meeting this week as it prepares to start taking measures to reduce liquidity. Then we have US November non farm payrolls on Friday. If all commodities rise till Wednesday then I expect them to fall before the ECB meeting and US November non farm payrolls.
It may not be one way traffic this week.
TECHNICAL VIEW
COMEX GOLD FEBRUARY
Gold has to break the $1196-$1207 zone by Wednesday or else it will fall to $1145-$1126. Intra day a fresh wave of selling will be there only on a consolidated fall below $1169.
MCX GOLD FEBRUARY – SHORT TERM VIEW
Bullish over 17002 with 18417 and 18886 as price targets. Only a daily close below 17002 will alter the bullish trend into bearish trend.
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, 30 November 2009 | Digg This Article | Source: GoldSeek.com
