-- Posted Wednesday, 14 July 2010 | Digg This Article
| | Source: GoldSeek.com
GENERAL MARKET CONDITIONS/FUNDAMENTAL FACTOR
The Portugal debt rating downgrade by Moody resulted in gold and silver flaring up. But the euro also rose and the US dollar weakened. I do not understand the timing of the rating downgrade after the soccer world cup. There seems be vested interest and connivance with hedge funds and others and that the Portugal rating downgrade could have been leaked. After Moody now other credit rating agencies will also cut Portugal’s rating which will result in gold and other safe havens rising further. Investors open your eyes and mind and now start to look beyond these rating agencies. They have fooled you earlier in 2007-2008 and it would be wise not to rely on these rating agencies. The rating agencies are loosing their credibility slowly and steadily.
Eurozone business and policy makers have tasted the blood of a weaker euro and its positive effect on exports. Going forward in future one can expect that they will now indirectly follow a weak euro policy and do everything to ensure that euro trades with a softer bias in the long term and/or that it reduces the pace of gains. The lagging effects of a weaker euro by way of higher growth will be felt in October to December quarter and not now. With stable crude oil prices, inflation due to a weaker currency will not pose any risk.
Technically all commodities are bullish and can rise further. The key support to watch for today are:
Gold: $1207
Silver: $1815
Copper: $295
Crude Oil: $75.40
COMEX TECHNICAL VIEW
COMEX GOLD AUGUST
Bullish over $1207 with $1225 and $1232 as price target
Bearish below $1202 with $1196 and $1186 as price target
Neutral Zone between $1202-$1207
A consolidated break of $1219 will result in $1230-$1242. Fresh wave of selling will be only on a consolidated fall below $1208
MCX GOLD SHORT TERM VIEW
MCX gold has managed to trade over Rs.18200 and now needs to break Rs.18603 for Rs.18794. In the short term as long as gold trades over Rs.18200 it will continue to rise to Rs.18927+. For a bear trend in gold it needs to trade below Rs.18200 for two consecutive days else dips will provide investing opportunity.
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, 14 July 2010 | Digg This Article | Source: GoldSeek.com
