GENERAL MARKET CONDITIONS

Lay offs continue in the US with United airways and Citi group announcing. UAL has announced that it will lay off 950 pilots. The layoffs are more in crude oil dependent industries and financials. Crude oil prices are directionless. It may take a few months for demand in emerging markets to fall. At the moment currency traders will be caught between eurozone and US economic growth. Cable will be switched between the US dollar and euro. Markets will be judging the level of hawkishness of Bernanke tomorrow.

Australia’s gold production is expected to fall 7.8% to 231 tonnes in the year to June 30 according to the Australian Bureau of Agricultural and Economic Resources. Australia is the world’s third largest gold producer and although a rebound in output to 256 tonnes is expected in 2008/09, long term (3-5 years) gold supplies will be in deficit. The Central bank Gold Sales agreement (CBGA) will be over by 2010-2011. With no fear of central bank sales gold will have an unending one way rise after CBGA gets over.

PLATINUM OCTOBER -- INTRA DAY PIVOT $2055.0

In the short term platinum can fall to $1980 and thereafter target $2100 and $2192 as long as $2038 and $2019 holds

MCX CARBON CREDIT --NOVEMBER (price in Indian Rupees)

Carbon Credits targets 1454 and 1502 this week as long as 1395 holds.

MCXARUN
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