-- Posted Thursday, 22 July 2010 | Digg This Article
| | Source: GoldSeek.com
GENERAL MARKET CONDITIONS/FUNDAMENTAL FACTOR
Gold Trading Fell 16% in London in June, Silver Slid, LBMA Says
Gold trading in London declined in June as average daily volumes fell 16 percent, according to the London Bullion Market Association. Silver trading dropped 19 percent. An average of 20.8 million ounces of gold traded daily, down from 24.7 million in May, the LBMA said today in an e- mailed statement. Silver turnover fell to a daily average of 85 million ounces, from 104.3 million ounces.
Higher gold prices are deterring investors from trading. Gold prices are being driven more by demand from exchange traded funds than anything else.
US financial overall is now a law
The law, named after its principal authors, Connecticut Senator Christopher Dodd and Massachusetts Representative Barney Frank, gives the government new authority to unwind failing financial firms that may threaten the entire system, imposes new rules on derivatives markets and creates a consumer-protection agency at the Federal Reserve to monitor everything from home loans to credit cards.
Our View: The law will no doubt reduce excessive speculation but it will cripple innovation in financial markets on fears that the state wants to control everything. Other central banks ape what the US government does has been the trend over the years. We might see the beginning of a state control over the financial markets. But in the end gold will be the winner as central banks will be divided over the price of gold.
Other news: North Korea has been imposed more sanctions by the US. Over the past few years geopolitical risk has not affected financial markets and I do not think it will have any affect unless a war like situation arises.
2010 will be more remembered as the year of big catastrophic oil disasters. After the BP’s oil spill in the Gulf of Mexico we have another one in China. We all know that the Chinese suppress information. The real damage to ocean life will be never be known. For a few million dollars global politicians are taking the survival of humans on earth to ransom. We must take our own initiative against these politicians. In our daily lives each one of must ensure that we pollute the environment in the least possible way. Collective efforts will make the mother earth a better place to live in. Mail me your suggestions on we can reduce pollution in our daily lives at chintan@insigniaindia.com and I will add them in our daily updates.
Intra day
Gold’s rise from $1175 to $1198 was not backed by any increase in investment demand. It was only the rise in physical demand which lifted gold. Silver, base metals and energies fell as the US dollar gained and stock markets fell. Base metals and energies will track stock markets while gold needs to trade over $1175 to prevent a technical breakdown.
COMEX TECHNICAL VIEW
COMEX GOLD AUGUST
Bullish over $1185 with $1196 and $1212 as price target
Bearish below $1174 with $1166 and $1148 as price target
Neutral Zone between $1174-$1185
Looks bearish and the fall may not stop loss at $1175 if gold fails to break $1202 today. A daily close below $1175 tomorrow will be very bearish for gold in the short term.
COMEX SILVER SEPTEMBER
Bullish over $1764 with $1805 and $1851 as price target
Bearish below $1748 with 1708 and $1682 as price target
Neutral Zone between $1748-$1764
A close below the 200 day MA around $1764 today can result in $1708 and $1665 in short term. Silver desperately needs to close over $1764 to maintain its bullish trend.
COMEX COPPER SEPTEMBER
Bullish over $297.40 with $307 and $317 as price target
Bearish below $294 with $289 and $284 as price target
Neutral Zone between: $289-$295
So far so good for copper but it now needs to trade over $303 for continuance of bull zone.
NYMEX CRUDE OIL (1ST CONTRACT)
Bullish over $76.20 with $78.60 and $80.20 as price target
Bearish below $74.80 with $72.95 and $71.50 as price target.
Crude oil can fall to $73.50 and $71.50 after repeated failures to break $78.50
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 Thursday, 22 July 2010 | Digg This Article | Source: GoldSeek.com
