The Bush administration projected the U.S. budget deficit will soar to a record of nearly half a trillion dollars in fiscal 2009 as a housing-led economic slowdown cuts into government revenues. The new report said the budget deficit would fall to $178 billion in 2010, and surpluses would emerge in 2012. However, the deficit projections did not include the full amount of funding for the wars in Iraq and Afghanistan or costly tax law changes, and acknowledged it would be a "challenge" to reach surpluses in 2012. A prudent overseas investor will not buy into US government instruments. Precious metals will benefit as a result of the same.
The US financial crisis is spreading from subprime borrowers to wealthier consumers, with evidence mounting that more affluent people are failing to pay their mortgages and credit card balances. Growing concerns over the financial health of richer borrowers are prompting banks and card issuers to tighten lending practices in moves that could further dampen consumer confidence and spending. More positive news for gold, that is all I can say.
Lead, zinc and other base metals will remain firm on reduced Chinese production capacity and firm global demand. Nickel should bottom out soon. Long term investors should invest in Nickel as the risk to return ratio is in favour of the buyers.
COPPER -- SEPTEMBER FUTURE -- INTRA DAY PIVOT: $354.0
200 day MA around $354 is the key support. Resistance is at 100 day MA around $378. Falls below $354 will result in $347 and $339.
HAPPY PROFITABLE TRADING
(from insignia)
MCXARUN
9994500540
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