-- Posted Friday, 3 February 2006 | Digg This Article

 

GOLD	SILVER
COMEX GOLD APRIL FUTURE -- $576.60	COMEX SILVER MARCH FUTURE -- $990.00
EXPECTED TRADING RANGE
GOLD -- $562.40 -- $600.00	SILVER -- $958.50 - $1020.00
COPPER AND CRUDE OIL -- EXPECTED TRADING RANGE
COPPER MARCH -- $220.60 - $228.60	NYMEX CRUDE OIL FEBRUARY - $62.20 - $66.47
MULTI COMMODITY EXCHANGE OF INDIA (MCX)
GOLD APRIL FUTURE/10 GRAMS	SILVER MARCH FUTURE/KG
Rs.8140 - Rs.8300	Rs.13580 - Rs.14000
COPPER MARCH FUTURE	CRUDE OIL FEBRUARY FUTURE
Rs.220.20 - Rs.233.40	Rs.2832 - Rs.2960
GENERAL MARKET CONDITIONS
Gold April future reached yet another record high of $579.50 before settling at $576.80. Silver March future settled at $987.70. However we cannot ignore copper as LME prices approach $5000.00 a tonne as Comex March future rose tom a high $231.50. Copper is the king among the commodities and is expected to rise to $300.00 over the coming weeks. Crude oil fell on warm weather in US and other parts of the world. The US dollar is trading in a range ahead of the US January payroll numbers.  ElBaradei said the resolution has enough votes to send Iran to the Security Council. A vote is likely today. The Security Council will defer any action on Iran until at least March 6, when the IAEA's board reconvenes, ElBaradei said. The fact is, none of the countries other than US wants a war with Iran as some of their energy needs are met by Iran. The diplomatic dialogue will continue and try to delay the sanctions and possible attack on Iran. However if there are sanctions on ran in the coming months then crude oil will easily break $80.00 mark for $100.00 which none of the countries will want as it impacts their monetary policy. Gold and silver will remain bullish unless these uncertainties are buried.   Japanese finance officials said that conditions were not right to end Japan’s policy of quantitative monetary easing, in which liquidity is pumped into the banking system, despite optimism that deflation was finally being defeated. The bank of Japan will not increase interest rates but may stop printing more yens and put the same into the market. Once they start this there will be a shrinkage in global liquidity and commodities prices including gold and silver will see a sharp correction. Japanese investors may invest more in local assets including real estate and equities which may further affect commodity prices. However if crude oil prices rise float above $80.00 a barrel for a considerable period then the Japanese recovery will be short lived.  The medium to long term bullishness remains intact for gold and silver with $605.00 and $1050.00 as the immediate price targets. Pullback will provide yet another buying opportunity.   There is a huge optimism over the January payroll numbers and markets are pricing an excellent one.  I just hope it does not turn out to be a damn squib. Gold and silver will be as volatile as they are with one way traffic at any point of time.
GOLD
Gold now as new support base at $565.00 and is trading in $570.00 - $585.00 zone. A consolidated break of $580.00 for four hours will result in $600.00 and $625.00. Only a close below $568.00 for two consecutive days will result in further losses to $550.00 and $540.00 else the downside will remain limited to $568.00.
SILVER
Silver now targets $1000.00 and $1050.00 if it holds $952.00 on closing basis. It is consolidating at $9720.00 at the moment and is nearing over brought territory and there may be a correction to $952.00 and $936.00 which will present yet another buying opportunity.
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-- Posted Friday, 3 February 2006 | Digg This Article

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