-- Posted Wednesday, 6 January 2010 | Digg This Article
| | Source: GoldSeek.com
GENERAL MARKET CONDITIONS/FUNDAMENTAL FACTOR
Economic numbers from the US and other parts of the globe point to more gains in store for silver, base metals and energies. There has been a technical breakout in silver which suggests that if silver is able to hold on to the current prices till Monday then it can rise another ten percent. Gold has been caught between a stronger US dollar and reduced safe haven demand. Technically gold is bullish but the rise will be dependent on the ability to break $1133.
Yesterday I read in Bloomberg that Stephen roach of Morgan Stanley believes that the Federal reserve should start withdrawing monetary stimulus if the US economy as is as strong as they say, or else it will create asset bubbles. I fully support his view and that if the Federal reserve does not start withdrawing monetary stimulus before the first quarter then one can expect commodity asset bubbles. Base metals particularly nickel do not justify fundamentals.
TECHNICAL VIEW
COMEX GOLD FEBRUARY
Bullish over $1109 with $1130 and $1138 as price target.
Bearish below $1100 with $1091 and $1082 as price target.
Neutral Zone between $1100-$1109
The key technical resistance is at $1130 and gold needs to break the same convincingly to target $1151. A daily close over $1130 today will be very positive going forward. There are 2 scenarios for gold today. (A) Failure to break $1130-$1133 zone will result in a fall to $1109 and $1100. (B) A convincing break of $1130-$1133 zone can result in $1151.30 and $1172 in short term.
MCX GOLD FEBRUARY
Failure to break 16980 today will result in a fall to 16733 and 16660. While a consolidated break of 16980 will result in 17110-17220 zone.
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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 Wednesday, 6 January 2010 | Digg This Article | Source: GoldSeek.com
