Bullion
The precious metal reached record highs in both sterling and euro terms, signaling bullion's strength against not only the U.S. dollar but also currencies across the board. Gold in MCX is also at highest level on closing basis at 14072Rs per 10 gram. Investors are getting out of currencies and getting into gold.
Holdings backing the SPDR Gold Trust, the world's largest gold ETF, climbed 13.15 metric tons Thursday to a record 819.11 tons. Some hedge-related selling from mining companies appeared to occur around $900, but this was overrun by investment demand and buying back of previously sold positions. Flight-to-safety buying combined with technical momentum above the late-December highs enabled gold futures to touch the $900-an-ounce level Friday. Traders cited this throughout the day due to worries about the global economy and financial system. This enabled gold to break above its 200-day moving average early in the day.
Gold is not having consistent correlation with any factor these days like Euro-Dollar, Crude Oil or Equity Market. The Euro lost against the US Dollar for the fourth consecutive week of trade, but a substantial rally from intraweek lows suggests that traders are thus far unwilling to push the Euro/US Dollar even lower. Flare-ups in financial market tensions and well-publicized sovereign debt downgrades of three European Monetary Union member countries were the primary drivers of Euro losses. Indeed, near-universal declines in European equity indices underlined material deterioration in domestic risk sentiment and financial market confidence.
Holdings backing the SPDR Gold Trust, the world's largest gold ETF, climbed 13.15 metric tons Thursday to a record 819.11 tons. Some hedge-related selling from mining companies appeared to occur around $900, but this was overrun by investment demand and buying back of previously sold positions. Flight-to-safety buying combined with technical momentum above the late-December highs enabled gold futures to touch the $900-an-ounce level Friday. Traders cited this throughout the day due to worries about the global economy and financial system. This enabled gold to break above its 200-day moving average early in the day.
Gold is not having consistent correlation with any factor these days like Euro-Dollar, Crude Oil or Equity Market. The Euro lost against the US Dollar for the fourth consecutive week of trade, but a substantial rally from intraweek lows suggests that traders are thus far unwilling to push the Euro/US Dollar even lower. Flare-ups in financial market tensions and well-publicized sovereign debt downgrades of three European Monetary Union member countries were the primary drivers of Euro losses. Indeed, near-universal declines in European equity indices underlined material deterioration in domestic risk sentiment and financial market confidence.
COMEX Gold has support at $850 and resistance at $930.
Buy MCX Gold (Feb) on dips ~14000 SL 13750 Tgt 14400
COMEX Silver has support at $11.30 and resistance at $12.30
Buy MCX Silver (Mar) above19300 SL 18700 Tgt 20000
Buy MCX Gold (Feb) on dips ~14000 SL 13750 Tgt 14400
COMEX Silver has support at $11.30 and resistance at $12.30
Buy MCX Silver (Mar) above19300 SL 18700 Tgt 20000
Energy
Happy Days Are Back !!
The rally of 9% in oil prices gives a surprise to investors despite increasing stockpiles to the record. Crude oil rose to a two-week high $47 on speculation that stockpiles will decline as OPEC implements promised production cuts and investors purchased commodities as an alternative to stocks and bonds.
In earlier trading, oil fell to an intraday low of $41.40 a barrel, pressured by rising inventories and worries about the severity of the global economic downturn. In Europe, Britain's economy contracted at its fastest quarterly pace in nearly 29 years during the final three months of 2008, according to government data. This marked a result even worse than most economists' pessimistic expectations, as gross domestic product shrank by 1.5%. The sharp deterioration in the world economy has led to a steep decline in energy demand and resulted in the recent sharp slide in oil prices.
The Energy Information Administration reported that U.S. crude supplies rose by 6.1 million barrels to stand at 332.7 million barrels during the week ended Jan. 16. The build was much higher than the 1.9 million barrels analysts had expected. The delivery point at Cushing, Okla for oil futures rose 200,000 barrels to reach a record 33.2 million barrels, the government's data showed.
The investment funds are going from treasuries to gold and other commodities as investors look for a safe haven. Treasuries fell; with 30-year bonds heading for the biggest weekly loss in 26 years, on concern that debt sales will increase as the U.S. government boosts spending to ease the deepening economic slump. Selling pressure in dollar and other major currencies may lead the oil prices upward with the cue of gold. The performance of currencies will be the important indicator for price fluctuations.
The rally of 9% in oil prices gives a surprise to investors despite increasing stockpiles to the record. Crude oil rose to a two-week high $47 on speculation that stockpiles will decline as OPEC implements promised production cuts and investors purchased commodities as an alternative to stocks and bonds.
In earlier trading, oil fell to an intraday low of $41.40 a barrel, pressured by rising inventories and worries about the severity of the global economic downturn. In Europe, Britain's economy contracted at its fastest quarterly pace in nearly 29 years during the final three months of 2008, according to government data. This marked a result even worse than most economists' pessimistic expectations, as gross domestic product shrank by 1.5%. The sharp deterioration in the world economy has led to a steep decline in energy demand and resulted in the recent sharp slide in oil prices.
The Energy Information Administration reported that U.S. crude supplies rose by 6.1 million barrels to stand at 332.7 million barrels during the week ended Jan. 16. The build was much higher than the 1.9 million barrels analysts had expected. The delivery point at Cushing, Okla for oil futures rose 200,000 barrels to reach a record 33.2 million barrels, the government's data showed.
The investment funds are going from treasuries to gold and other commodities as investors look for a safe haven. Treasuries fell; with 30-year bonds heading for the biggest weekly loss in 26 years, on concern that debt sales will increase as the U.S. government boosts spending to ease the deepening economic slump. Selling pressure in dollar and other major currencies may lead the oil prices upward with the cue of gold. The performance of currencies will be the important indicator for price fluctuations.
Buy MCX Crude (Feb) above 2280 SL 2170 TGT 2380 & 2415
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