We are passing historic
time as both major economies of US and EU (as united) is in gloomy situation
and possibly solution is far reach and can dampen global growth.
As economic power is transforming and ongoing question is arising with changing situation about USD as reserve currency, which argument is hot now a days and individually 2nd largest economy China openly wished for Yuan to become a reserve currency (although they may know its not very easy to replace or a time taking process ). Nigerian central Bank governor told yesterday to Invest 5% To 10% of their reserves In Yuan(effect of china's long time effort on African countries).
In recent time we ‘ve seen
central banks coming openly to protect own currency which dampening safe heaven
image of some particular currencies like USD and CHF. As an example SNB intervention yesterday made
it weaker for more than 700 pips against USD, possibly it was a historic move
for USDCHF.
GOLD: aforesaid
reasons are insisting investors and hedgers including central banks to accumulate
gold as an alternative. So mid to long term gold will remain difficultly positive, currency war,
regrouping of world political powers after fall of Soviet union, rising of
China, cornered USA, indicating ancient reserve currency to glitter.
Correction is a part of the
market movement and healthy correction always is an opportunity and as price is
in record high area and volatility is very high in all sectors so better to
stay cautious.
Globex SPOT GOLD made a outside
day and engulfment yesterday, which indicate more lower prices ahead and one
good sup is $1812-24 and major support $1794/98.
SILVER: volatility increased today, like gold, silver also in
uptrend. sup here is $40.50 and one major trend sup $40, below can attract
downward pressure while mcx dec silver major trend sup 62600 and any convincing
break below can pull prices down towards 61k and 59800.
