-- Posted Friday, 15 October 2010 | Digg This Article
| | Source: GoldSeek.com
GENERAL MARKET CONDITIONS/FUNDAMENTAL FACTOR
Traders and investors are aggressively pricing that the Federal Reserve will start another set of quantitative easing anytime soon. This is the only reason for commodities to rise. There is no other reason. Gains in the yen are further supporting gold and other commodities. Momentum has defied the technical and it’s better to trade with the technical using higher stop losses.
If you read the net most of the analyst are expecting $1500 before the close over 2010. There is still a minimum of fifty trading session left and if gold and silver rise at the current pace then $1600 for gold and $3000 for silver can be easily possible. My view is that gold and silver are moving into bubble zone but the bursting will take time. Probably before Mr. Obama leaves in office in another two years time, gold can rise to $2500 easily. Mr. Bush manipulated crude oil prices to $147 and now it seems that Mr. Barack Obama’s policies will spell doomsday for the US dollar and a bubble for gold and commodities. I do not believe that Chinomics (Chinese economic policy) is the sole reason for the developed nations economic woes.
COMEX TECHNICAL VIEW
COMEX GOLD DECEMBER
Bullish over $1366.50 with $1397 and $1409 as price target
Bearish below $1354.30 with $1344 and $1339 as price target
Neutral Zone between $1354.30-$1366.50
Gold can now rise to $1397 and $1409 as long as it trades over $1366. A close over $1366 today can result in $1425 by next week.
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
PLEASE NOTE: HOLDS MEANS HOLDS ON DAILY CLOSING BASIS
PLEASE USE APPROPRIATE STOP LOSSES ON INTRA DAY TRADES TO LIMIT LOSSES.
Customer care: 9811139549/9311139549
You can also mail your queries at chintan@insigniaindia.com
-- Posted Friday, 15 October 2010 | Digg This Article | Source: GoldSeek.com
