-- Posted Thursday, 4 March 2010 | Digg This Article
| | Source: GoldSeek.com
GENERAL MARKET CONDITIONS/FUNDAMENTAL FACTOR
The rise in gold prices was supported after the Russian central bank said it will consider buying gold from the producers. The European currency crisis and increase in investment demand for gold further supported gold prices.
U.S. Said to Tell Hedge Funds to Save Euro Records
The U.S. is asking hedge funds not to destroy trading records on euro bets, according to a person with knowledge of the requests, as Europe and the U.S. step up scrutiny of the funds’ role in the Greek debt crisis. The European Commission said yesterday it will investigate trades in sovereign credit-default swaps in the wake of the Greek crisis, which has pushed the euro lower and prompted officials to warn hedge funds they shouldn’t try to profit from the woes of the region’s nations. One of 23 themes discussed at the Feb. 8 dinner was a wager that the euro would fall against the dollar.
Our view: Blaming hedge funds, speculators for the slide in the euro is ideal for financial market openness. Global interest rates are very low and there is lack of long term secure investment avenues. Everyone wants to make a quick short term buck and move ahead. Indirectly now the US and European central bank are saying that they want to regulate currency trade. If this is any indication of the things to come then in the long term central banks will try and regulate every investment by hedge funds and large funds. But central banks will never be able to regulate gold and other precious metals trade. I expect a two fold increase in gold investment in the next three years. Gold in the short term will be behaving like a paper investment on changes in investment demand.
COMEX COPPER MAY
Bullish over $333.60 with $343.40 and $354.0 as price target
Bearish below $329 with $321 and $313 as price target
Neutral Zone between: $329 and $333.60
Support: $333.60 and $321.10
Resistance: $343.10 and $347.10
Copper needs to break and trade over $343.80 for $349 and $356. On the lower side as long $333 and $328 are the support prices.
MCX COPPER APRIL
Bullish over 344.60 with 348.90 and 354.10 as price target
Bearish below 341.50 with 338.10 and 334.50 as price target
Neutral zone between 341.50-344.60
Support: 344.50-338.60
Resistance: 350.90-354.10
Intra day Trading Strategy: Buy only on a consolidated break of 351 (till then a sell on rise strategy)
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
You can also mail your queries at chintan@insigniaindia.com
-- Posted Thursday, 4 March 2010 | Digg This Article | Source: GoldSeek.com
