Intraday Market Thoughts

Archived IMT (2010.11.09)

by Ashraf Laidi
Nov 9, 2010 15:27

GOLD/SILVER RATIO DROPS BELOW 50 for 1st time since March 2008 (see Spet 3 warning on G/S Ratio) GOLD EXTENDS GAINS TO FRESH HIGHS AT $1424 after breaking out of its 2-week consolidation (prevailing since early October) as the Fed announced prolonged asset purchases. The Feds failure to attaining its objectives of maximizing growth, lowering unemployment and attaining price stability has opened the door for commodity bulls. BARRING ANY SHARP USD-REBOUND (likely resulting from renewed troubles in Europe or another Chinese rate hike), gold appears set to amass further gains towards the preliminary resistance of $1,480-85/oz, which is right below the top of the 2-year channel. Any pullbacks are seen supported near $1,360 (from previous support of 1325). A close below $1,310-15 would be seen a threat to $1,260-65. SILVER EYES $38-39/oz, breaking above the 50% retracement of the decline from its $49 record high. I AM SPEAKING at IFSS Summit @ Four Seasons - Dublin Tomorrow speakers include Gillian Tett and Linda Yueh


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