-- Posted Friday, 10 March 2006 | Digg This Article

 

GOLD	SILVER
COMEX GOLD APRIL FUTURE -- $547.30	COMEX SILVER MAY FUTURE -- $997.50
EXPECTED TRADING RANGE
GOLD -- $538.00 -- $570.00	SILVER -- $966.50 - $1035.00
COPPER AND CRUDE OIL -- EXPECTED TRADING RANGE
COPPER MAY -- $212.35 - $224.60	NYMEX CRUDE OIL MARCH  - $59.56 - $63.10
MULTI COMMODITY EXCHANGE OF INDIA (MCX)
GOLD APRIL FUTURE/10 GRAMS	SILVER MAY FUTURE/KG
Rs.7840 - Rs.8190	Rs.13800 - Rs.14500
COPPER MAY FUTURE	CRUDE OIL MARCH FUTURE
Rs.214.30 - Rs.228.35	Rs.2623 - Rs.2800
GENERAL MARKET CONDITIONS
Gold and silver pared all the early weeks losses as Gold April future rose to a high of $551.70 and silver May future rose to a high of $1009.00 before settling lower at $547.00 and $997.00. The yen dropped sharply after bank of Japan signaled an end to its ultra loose monetary policy. The prospect of higher rates may change the psychology surrounding the yen’s attractiveness as a funding currency which is resulting in the current slide.  How can gold fall. There is huge physical demand in India. I have a client who is very small importer of gold in Delhi and he is now importing between 200 kgs to 300 kgs a day. (This client, a month ago used to import 50 kgs to 100 kgs a day). This is despite the fact that sales tax in Delhi is higher than its neighboring state of Uttar Pradesh. The marriage seasons is about to begin after middle of next week. The demand from farmers also rises in March and April in North and Central India as farmers invest proceeds from crop harvest into gold. The Indian gold hunger is here to stay over the next sixty days.  The west's confrontation with Iran over its nuclear activities intensified after Britain claimed that Tehran could acquire the technological capability to build a bomb by the end of the year. These comments will only result in investors increasing their investments into safe havens like gold, silver, treasuries etc.  Considering the fragile geopolitical situation, Gold and silver should rise further and that pullbacks will attract long term investors. The de linking between gold prices and the US dollar should continue. However reduction in global liquidity will result in higher volatility.
GOLD
Gold needs to break $555.00 for $565.00 and $573.00. On the lower side $546.00 is the initial support with $538.00 as the key short term support.
SILVER
A break of $1010.00 will result in $1030 - $1040.00 very quickly. On the lower side $994.0 is the initial support with $968.00 as the key short term support.
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-- Posted Friday, 10 March 2006 | Digg This Article

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