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-- Posted Friday, 23 September 2005 | Digg This Article

 

INSIGNIA CONSULTANTS
Precious Metals Market Update for 23rd September,  2005
GOLD	SILVER
COMEX GOLD DECEMBER FUTURE -- 469.50	COMEX SILVER DECEMBER FUTURE -- 741.50
EXPECTED TRADING RANGE
GOLD -- 456.80 -- 484.40	SILVER -- 720 - 760.00
GENERAL MARKET CONDITIONS
Gold december future fell to a low of $466.80 after comex open yesterday after hurricane Rita was downgraded to a category 4 from category 5. Crude oil November future fell to a low of $65.88 a barrel after Hurricane Rita changed course and followed a track that would take it further to the east of the Houston-area refineries. The National Hurricane Center's latest projected track for the storm takes it and its strongest winds further away from the refining and chemical processing center of Houston, but puts the almost as large refining center around the Texas-Louisiana border in the crosshairs. Silver december traded in a range but with a firm bias.  The rise in precious metals is clearly risk aversion and principle protection by retail investors globally in order to protect themselves from a potential shock from oil prices. However this time around oil prices have not risen due to technical barriers and the arbitrage being in gold and silver and not crude oil futures.  December gold future has outperformed every investment avenue in September. It has risen from nearly from $435.00 to $479.00. A near ten percent rise in September alone. It’s unusual to a rally of more than three percent every month as far as gold is concerned. As USA tries to fund the two wars in Afghanistan and Iraq and tries to cope with natural disasters and possible future wars on Iran and other nations the US dollar will crumble despite every effort by the monetary authorities in US and the Fed to maintain the value of the greenback. Gold will rise further. The current rise in gold prices is nothing but an example of what investors and speculators need to expect in the movement of gold prices in the coming months and years. If at any time the US dollar struggles to maintain its value then the current gold prices are nothing but a floating part of the iceberg.  The inability of silver prices to rise suggests that its prices are being suppressed. It is the most undervalued and underperforming commodity in 2005. The movement suggest that it has become safe than gold. The prices movement and lack of volatility in silver suggest that silver is a wolf in sheep’s clothes and the wolf could be back to its original clothing in 2006 if not in 2005.
GOLD
Failure of gold to break $480.00 by next Wednesday will in a move back to $456.00 - $460.00 zone next week. Gold prices will be influenced by the damage done over the weekend by hurricane Rita
SILVER …
Silver repeated failure to close over $750.00 will result in a move back to $715.00 next week.
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Happy Profitable Trading
Disclaimer : Any opinions as to the commentary, market information, and future direction of
prices of specific currencies, precious metals, base metals, or equity indices reflect the views
of the individual analyst, In no event shall Insignia Consultants or its employees  have any liability
for any losses incurred in connection with any decision made, action or inaction taken by any
party  in reliance upon the information provided in this material; or in any delays, inaccuracies,
errors in, or omissions of Information.
Prepared By Chintan Karnani. Web Site:www.insigniaindia.com

-- Posted Friday, 23 September 2005 | Digg This Article

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