-- Posted Wednesday, 10 August 2011 | | Disqus
The Federal Reserve promised to keep US interest rates near zero for the next two years and that it would consider steps to help US growth. The Fed painted a gloomy picture, saying that U.S. economic growth was proving considerably weaker than expected, inflation should remain contained for the foreseeable and unemployment, currently at 9.1 percent, would come down only gradually.
Our View on the Federal Reserve meeting: This implies that if incoming US economic numbers show a slowdown in growth then there can be QE3. Now the interest rate guess on the USA is over. Now one just need to look at US economic fundamentals? The Federal Reserve move is bullish for equities, bearish for the US dollar, base metals and energies. As far as gold, silver and other safe havens is concerned, they will fall if and only if there are no bullion positive news such as sovereign debt woes from Europe, further downgrade of some major US government controlled agencies etc. If these happen then gold will rise to $2000 by next month and silver to $43.00.
COMEX GOLD DECEMBER
Bullish over $1740 with $1790 and $1860 as price target
Bearish below $1717 with $1698 and $1676 as price target
Neutral Zone between $1717-$1740
- Gold targets $1790 and $1826 as long as it trades over $1722
- There will be sellers only below $1722
- Trading call: Buy over $1760 for $1770 and $1790 OR sell below $1743 for $1730 and $1720
MCX GOLD OCTOBER
Bullish over 25750 with 26500 and 26900 as price target
Bearish below 25650 with 25370 and 25050 as price target
Neutral Zone: 25650-25750
- 26000 price target achieved. Gold can rise to 26500 and 27000 as long as it trades over 25600
- There will be sellers only below 25600
- Keep a close watch at 25600
- Momentum call: Buy over 25800 for 26100-26400 OR sell below 25600 for 25400-25100
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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, 10 August 2011 | Digg This Article
| Source: GoldSeek.com
