-- Posted Wednesday, 20 October 2010 | Digg This Article
| | Source: GoldSeek.com
GENERAL MARKET CONDITIONS/FUNDAMENTAL FACTOR
Interest rate hike by China
The 0.25% interest rate hike by China seems more of a political gimmick before the US state elections early next month and nothing else. Interest rates in China should have been raised long ago but refrained from doing so. My view is that the timing of Chinese interest rate hike suggests there has been some agreement between US president Barack Obama and China which is yet to surface. Inflation is already very high in China and the housing market is on the way towards a bubble zone so interest rates should have been raised earlier.
Effect: The Chinese interest rate hike will result in commodities falling in the short term and the US dollar gaining. It will prefer to use any fifteen percent (if any) to invest for the long term.
Today
All commodities should continue to fall for at least days to be in a bear zone else dips will be a buying opportunity. Watch the US dollar today.
COMEX TECHNICAL VIEW
COMEX GOLD DECEMBER
Bearish below $1343.30 with $1330 and $1313 as price target
Bullish over $1351.50 with $1362 and $1377 as price target
Neutral Zone between $1343.30-$1351.50
The correction in gold is a very healthy correction but gold needs to trade over $1313 for the whole week to target $1400+. Intra day gold needs to break $1351 else it will fall to $1327 and $1313
NYMEX CRUDE OIL (1ST CONTRACT)
Bullish over $82.00 with $84.28 and $86.10 as price target
Bearish below $81.10 with $79.60 and $77.50 as price target.
Crude oil needs to trade over $82 else it will fall to $79 and below.
MCX-SX US DOLLAR INDIAN RUPEE NOVEMBER
The Rupee is expected to open higher and can rise to Rs.44.90 and Rs.45.20 as long as it trades over Rs.44.70. Intra day fresh wave of selling will be there below Rs.44.70
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, 20 October 2010 | Digg This Article | Source: GoldSeek.com
