-- Posted Tuesday, 25 May 2010 | Digg This Article
| | Source: GoldSeek.com
The euro continues to fall and there is uncertainty over the unilateral action taken by Germany last week on the naked ban on short selling of bonds and certain securities last week. The euro issue will end in a day or a few weeks. It will take its own time. In our view the inverse relation between gold and euro/usd will continue for the rest of the week.
The focus on the markets is on North Korea. Geopolitical risk after a very long time is on the headlines. North Korean leaders ask its military to be ready for combat. North Korea and South Korea are battle ready. We do not know where it is headed for the time being. Whether there will be an armed conflict or not is the key. Further how long will this tension continue? This will keep markets and investors on their toes. The sinking of a South Korean by North Korean can have far reaching consequences. The tension in North Korea will be positive for gold which if it nears a war like situation over the coming weeks and months can result in gold rising to $1360 and $1550. It’s too early to comment on the Korean peninsula issue, but we need to be prepared for big moves in gold. The key prices to watch in gold are $1147-$1207 and $1252. A daily close above or below these prices will set the direction till end July.
It will be a technical trade and gold and silver are in a neutral zone to bullish zone. Base metals and energies can fall further on the Chinese slowdown and stock markets fall. One day global stock markets close on the green, the euro rises and bonds yields fall and the next day the reverse happens; global stock markets and the euro close in the red and bonds yields rise. It’s becoming increasingly difficult for short term traders to trade. The best way is to wait for your levels to come and trade. If you on hurry your trade then worry will remain a bit longer. Crude oil looks bearish after repeated failures to break past $74 and can fall to $61 in the short term.
COMEX TECHNICAL VIEW
COMEX SILVER JULY
Bullish over $1742 with $1819 and $1879 as price target
Bearish below $1711 with 1665 and $1636 as price target
Neutral Zone between $1711-$1742
100 moving average at $1742 and silver needs to trade over $1742 to target $1849-$1990. There will be a technical breakdown below $1742 for $1665 and $1595
NYMEX CRUDE OIL (1ST CONTRACT)
Bullish over $69.50 with $75.50 and $77.10 as price target
Bullish over $67.50 with $65.50 and $63 as price target.
Failure to break $72.20 by tomorrow can result in fall to $67 and $61.
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 Tuesday, 25 May 2010 | Digg This Article | Source: GoldSeek.com
