-- Posted Monday, 6 December 2010 | Digg This Article
| | Source: GoldSeek.com
GENERAL MARKET CONDITIONS/FUNDAMENTAL FACTOR
This US November non farm payrolls suggest that the Federal Reserve will continue with its easy money stance and that further increases in the money supply could be there if the US economy falls further. This suggests more gains for commodities for the week and the rest of December. The sovereign debt crisis in Europe and lack of investor confidence in the euro area will result in the European central bank and the Bank of England following an easy monetary policy at least till the first quarter of next year.
Unless the US dollar gains and/or there is any news to induce profit taking in gold, silver, copper and crude oil, the overall bullish trend will remain intact. Technically over bought conditions exist in gold, silver and copper.
COMEX TECHNICAL VIEW
COMEX GOLD FEBRUARY
Bullish over $1401 with $1422 and $1440.00 as price target
Bearish below $1396.00 with $1388 and $1372 as price target
Neutral Zone between $1396-$1401
Gold now needs to break $1424 for $1440-$1454. Intra day as long as the $1401-$1407 zone holds downside risk will be limited and that there will be sellers below $1407 only.
NYMEX CRUDE OIL (1ST CONTRACT)
Bullish over $86.50 with $92.16 and $98.56 as price target
Bearish below $84.30 with $80.50 and $79.50 as price target.
Crude oil is now headed for $127 and $160 by June 2011 as long as it trades over $75.00. Intra day there will be sellers below $86.90 only.
MCX GOLD FEBRUARY
Gold targets Rs.21005 and Rs.21729 before end December as long as it trades over Rs.20350-Rs.20450 zone. There will be a technical breakdown below Rs.20350 all the way to Rs.19866 and Rs.19722.
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 Monday, 6 December 2010 | Digg This Article | Source: GoldSeek.com
