-- Posted Friday, 17 March 2006 | Digg This Article

 

INSIGNIA CONSULTANTS
Precious Metals Market Update for 17th March, 2006
GOLD	SILVER
COMEX GOLD APRIL FUTURE -- $555.50	COMEX SILVER MAY FUTURE -- $1032.00
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)
GOLD APRIL FUTURE/10 GRAMS	SILVER MAY FUTURE/KG
Rs.7960 - Rs.8230	Rs.14330 - Rs.14880
COPPER MAY FUTURE	CRUDE OIL APRIL FUTURE
Rs.216.30 - Rs.228.35	Rs.2780 - Rs.2925
GENERAL MARKET CONDITIONS
Gold April future fell nearly $10 from a high of $557.60 to $548.10 after the US economic numbers but recovered swiftly to close higher at $555.40. Silver May future fell in line with to a low of $1013.00 before settling higher at $1034.20. The US dollar was ripped apart on slowdown in housing starts and tame inflation numbers suggesting that the Fed will soon end its measured pace of interest rate hikes.  US President Bush plans to issue a new national security strategy today reaffirming his doctrine of preemptive war against terrorists and hostile states with chemical, biological or nuclear weapons, despite the troubled experience in Iraq. The long-overdue document, an articulation of U.S. strategic priorities that is required by law, lays out a robust view of America's power and an assertive view of its responsibility to bring change around the world. On topics including genocide, human trafficking and AIDS, the strategy describes itself as "idealistic about goals and realistic about means." In his revised version, Bush offers no second thoughts about the preemption policy, saying it "remains the same" and defending it as necessary for a country in the "early years of a long struggle" akin to the Cold War. In a nod to critics in Europe, the document places a greater emphasis on working with allies and declares diplomacy to be "our strong preference" in tackling the threat of weapons of mass destruction."If necessary, however, under long-standing principles of self defense, we do not rule out use of force before attacks occur, even if uncertainty remains as to the time and place of the enemy's attack," the document continues. "When the consequences of an attack with WMD are potentially so devastating, we cannot afford to stand idly by as grave dangers materialize."  I had to mention about the revised doctrine of terror as it is gold and silver bullish and US dollar bearish. The US whether under Mr.Bush or anyone else wants to continue to be the judge of the world. It wants the world to do as it wants and the same it wants to promote democracy. Isn’t this sarcastic! As the power of the US dollar falls against gold, so will the American economy move into deep rooted recession. Do not looks at the economic numbers as they are merely statistical numbers which is manipulated by the Bush administration to suit their needs.  Considering the fragile geopolitical situation, gold and silver are expected to trade higher. Sharp pullbacks (if any) should be used as an opportunity to go long.
GOLD
Gold needs to break and close over $558.00 - $563 zone for $575.00 - $580 zone. On the lower side $550.00 is the initial support with $542.80 and $534.00 as the key short term supports.
SILVER
Silver targets $1040 and $1076. As long as $1010 holds on closing basis there is every possibility of $1100 over the coming weeks. A consolidated fall below $1010 will result in $994.00 and $968.00.
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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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-- Posted Friday, 17 March 2006 | Digg This Article

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