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Wall Street

Stocks on Wall Street weakened due to exposure to profit taking. U.S. employment data (the U.S.) are far below expectations.

Attenuation suffered by uncle sam stock, ending an eight-day rally Nasdaq. Although all the major indexes on Wall Street slid, but in a week they managed to add points.

U.S. employment data only increased 18,000 in June, well below even the lowest expectations of analysts. It is surprising investors who had just put the funds in capital markets.

Christine Lagarde

The International Monetary Fund (IMF) is looking for a replacement Dominique Strauss-Kahn, who resigned last week from his position as managing director. The names of replacement candidates also appear. One who championed the French Finance Minister Christine Lagarde.

Lagarde described by admirers as a “rock star” in the financial world. His figure may be able to save the reputation of his country in the scandal Strauss and fill positions in the IMF.

Then, why did he become the most favorite candidate?

According to the pages of The Telegraph, he was known to have serious character and hardworking, but also interesting. He was also widely praised, both inside and outside the country in handling the economic crisis. His English was perfect and spent most of his career as a lawyer in the United States.

Excellence Lagarde French finance minister who since 2007 was he the candidate who received at both sides of the Atlantic. After obtaining a law degree, Lagarde joined the American law firm, Baker and McKenzie, the first in Paris. Then, he went to Chicago, and began to pursue a position as director of the company. He remained in America for 25 years, and uncomfortable on Wall Street.

Former IMF chief economist, Kenneth S Rogoff, assessing Legarde very impressive. “He has a strong personality and smart in politics,” he told The New York Times. “At meetings around the world, he is treated like a rock star,” he said.

However, Lagarde has some obstacles to occupy chairs the IMF’s top brass. First, it comes from France. IMF may not be ready to refer back to the French after the capture of Strauss-Kahn. Another reason was that he was under investigation.

Minister is caught in a mysterious scandal over 285 million euros involving supporters of Nicolas Sarkozy’s controversial leader, Bernard Tapie. Prosecutors had requested a full investigation of the role of Lagarde. It is difficult for the IMF to select figure that the IMF can derail the second time.

Moreover, French President, Sarkozy may not want to lose one of the servants of the most popular, respected, and successful minister.

IMF announces new director search process that will end June 30. Whether it’s Lagarde or another candidate, will be tested through a related signal the future direction of the financial world.

Several other candidates are former Turkish Finance Minister Kemal Dervis, the German economist Klaus Regling, Singapore Finance Minister Tharman Shanmugaratham, and former British Prime Minister Gordon Brown.

Gold moving sideways over the last few weeks and seemed unable to continue relinya which started earlier this year. Gold has moved up by 11.14% from early 2011.

Market players are awaiting visible Fed’s monetary policy meeting this June and look forward to what the next Fed policy of quantitative easing after the Fed stopped its Phase II of $ 600 billion. Some market participants and analysts open the possibility the Fed will adopt a quantitative easing phase III with the amount of funds injected less than before. Some are projecting the Fed will begin a step out of the stimulus gradually.

Quantitative easing by the Federal Reserve with the intention of encouraging banks to lend money to the business world so that businesses can expand and move the economy back.

From the daily chart, the price of gold is seen to have penetrated to the bottom line of the uptrend. This shows the current rise in gold prices restrained and entered a period of consolidation. When we draw the line Fibonacci from the highest level of gold at $ 1,576 per troy ounce to the lowest level at $ 1,462 per troy ounce, we will find retracement area of ??61.8% is in the range of $ 1,505 per troy ounce which could be the target level of correction in gold prices further.

Gold consolidation could occur in the range $ 1,505 – $ 1,537 per troy ounce at least until the decision of the U.S. Federal Reserve monetary policy on 22 June.

How does the movement of gold after the Fed’s announcement of decision creatures? In our opinion, whatever the outcome of the Fed decision, gold prices tend to rise still be able to penetrate even the level of $ 1,600 per troy ounce. Several fundamental factors leading to higher gold prices are:

The U.S. dollar that have not will be strengthened consistently since the U.S. economic recovery is still not added to the debt burden and the growing U.S. budget deficit. U.S. debt to GDP ratio was already close to 100%.
World inflation rate tends to rise. Gold is often used as hedging instruments of assets against inflation.
Uncertainty in the European settlement of the debt crisis cause concern to market participants continued to be a recession in Europe and could possibly evolve into another country.
Gold demand is rising higher than gold production. According to the World Gold Council (WGC), gold demand rose 11% in the first quarter of 2011 compared with the level of gold production is actually down 4% over the same period.
Trends in the addition of gold holdings by central banks in the world. According to WGC, in Q1 2011, total purchases of gold by central banks has reached 129 tons. This amount is higher than the total central bank gold purchases during 2010.

From the analysis of any chart of gold prices are still projected to rise to record an increase this momentum can be lost if the gold price down through important support levels at $ 1,462 per troy ounce

The slow process of divestment of shares in PT Newmont Nusa Tenggara (NNT) are entitled to central government, until now still not yet direstuinya stagnates due to the transfer of shares by the Ministry of Energy and Mineral Resources (KESDM).

Consequently, the NNT can not give statements of changes in the composition of the new ownership to the Capital Investment Coordinating Board (BKPM), prior to the clarity of KESDM. The company plans to offer shares to the public premiere was the possibility can not be done this year.

He said, the payment process and the change is pending approval. If not completed, then the NNT will not be able to continue the process of IPO.

Until now, the NNT was still waiting for further letter from the KESDM, which states agree and acknowledge signals a change in the composition of ownership shares.

According to the IPO, the NNT should pay attention to timing and also the factors that could affect the share price would be released to the market.

However, if the divestiture process is never finished, then the NNT alone can not do anything to point to the IPO.