-- Posted Wednesday, 15 March 2006 | Digg This Article

 

GOLD	SILVER
COMEX GOLD APRIL FUTURE -- $551.80	COMEX SILVER MAY FUTURE -- $1024.00
EXPECTED TRADING RANGE
GOLD -- $547.40 -- $575.00	SILVER -- $999.50 - $1076.00
COPPER AND CRUDE OIL -- EXPECTED TRADING RANGE
COPPER MAY -- $216.40 - $228.60	NYMEX CRUDE OIL MARCH  - $59.56 - $63.10
MULTI COMMODITY EXCHANGE OF INDIA (MCX) – Opens 5:00 PM IST today.
GOLD APRIL FUTURE/10 GRAMS	SILVER MAY FUTURE/KG
Rs.7994 - Rs.8230	Rs.14220 - Rs.14880
COPPER MAY FUTURE	CRUDE OIL APRIL FUTURE
Rs.216.30 - Rs.228.35	Rs.2760 - Rs.2925
GENERAL MARKET CONDITIONS
The Ides of March has scared the left over commodity bears as Gold April future rose to a high of $553.60 and silver May future rose to a high of $1026.0 before settling lower at $553.00 and $1024.50. The US dollar was dumped against the major currencies after the US current account hit a record high of $224.9 billion in the fourth quarter or what is equivalent to 7 percent of GDP.   The only reason for the US dollar to gain/trade at the current levels is the expectations of higher interest rates. Every set of economic numbers are being watched by the traders to get clues on future course by the Fed on interest rates. A sustained fall in the US retail sales ex autos will result in Fed stopping its interest rates raising spree or even cut interest rates towards the close of the year. The Fed under Bernake will be sandwiched between raising interest rates to attract higher flows in the US economy as to be able to run it smoothly on the other hand it also has to ensure that higher interest rates does not lead to a housing collapse or reduction in consumer spending. Other central bankers namely European central bank and Bank of Japan are expected to raise interest rates this year. In every situation gold is the winner as it is the best hedge against higher interest rates and crude oil induced inflation.  The Iran situation is turning out to be a whirlpool to solve. The five veto-wielding members of the UN security council have failed so far to agree on how to address Iran's nuclear program. Britain unveiled a proposal at the United Nations last night to give Iran 14 days to suspend all work linked to uranium enrichment, but stopped short of specifying any punishment. From past experience we all know that Britain under Tony Blair is just a puppet of US president George Bush. These uncertainties will result in silver breaking the $1100.00 mark while gold nearing towards the $620.00 mark.  There is lack is lack of major market moving news. Gold and silver are expected to edge higher as they have edged past the key technical levels.
GOLD
A break of $554.00 will result in gold target ting $568.00 - $575 zone. On the lower side there is an initial support at $542.80 and $537.60 with $534.00 as the key short term support.
SILVER
Silver targets $1040 and $1076. It is rising faster than gold. Silver is like a Russian viper snake which stays calm after attacking. Silver rises $30 - $40 in one day and then makes previous high as the lower support base which is $1000 now. $968.00 is the key short term support.
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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
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errors in, or omissions of Information.

-- Posted Wednesday, 15 March 2006 | Digg This Article

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