-- Posted Thursday, 30 March 2006 | Digg This Article

 

GOLD	SILVER
COMEX GOLD APRIL FUTURE -- $572.70	COMEX SILVER MAY FUTURE -- $1118.00
EXPECTED TRADING RANGE
GOLD -- $562.40 -- $580.00	SILVER -- $1044.50 - $1110.00
COPPER AND CRUDE OIL -- EXPECTED TRADING RANGE
COPPER MAY -- $236.80 - $250.20	NYMEX CRUDE OIL MARCH  - $64.80 - $68.20
MULTI COMMODITY EXCHANGE OF INDIA (MCX)
GOLD APRIL FUTURE/10 GRAMS	SILVER MAY FUTURE/KG
Rs.8172 - Rs.8400	Rs.15670 - Rs.16800
COPPER MAY FUTURE	CRUDE OIL APRIL FUTURE
Rs.236.15 - Rs.245.35	Rs.2860 - Rs.3050
GENERAL MARKET CONDITIONS
“I dare not be short” that’s the message gold and silver gave to the markets. Gold April future rose to a high of $574.50 yesterday while May future rose to a high of $1119.00 in Asian trade. Crude oil prices over $66.00 a barrel further supported gold and silver prices. The US dollar failed to make any gains against the major currencies after the Fed interest rate hike.  The American Stock Exchange is preparing to introduce the first U.S. exchange-traded fund tracking crude-oil prices next week. If approved, the ETF would represent the first time individual investors would have a convenient, liquid vehicle for taking positions in crude oil itself, rather than investing in the shares of energy companies or mutual funds. The fund must still gain final regulatory authorization before its planned launch. The ETF will be managed by registered commodity-pool operator Victoria Bay Asset Management LLC. The fund's investment objective is for shares to reflect the performance of the spot price of West Texas Intermediate (WTI) light, sweet crude oil delivered to Cushing, Oklahoma, minus expenses, according to the filing. It will invest in energy futures contracts, cash-settled options and other instruments to achieve the oil exposure, and will also hold short-term Treasuries. Crude oil futures should easily break $80.00 a barrel over the coming week. If silver can rise 20% on ETF news, crude oil will also rise. Gold and silver will continue with their $10 day and $0.20 a day rise on crude oil ETF news.  MCX silver May future should breach the INR 16,000 mark and target INR 16500. There are huge open short positions in silver. These positions should start unwinding from today and we expect the MCX silver prices to cross the spot price. Gold there are a very few open positions and Gold June future could target INR 8600 – INR 8700 over the coming weeks if the current rise continues.  There is lack of major market moving news. However despite the rise and expectations of further rise, I will prefer to use a combination of bull and bear spreads while investing in silver, as it may be in the zone of over heating. The rise in gold prices is still justified due to foreign currency reserve diversification by various central banks and higher Asian demand.
GOLD
A break $578.50 will result in $600.00 and $620.00 zone. Initial support stands at $569.10 and $563.00 with $554.10 as the key short term support.
SILVER
Silver now targets $1200.00. It is reaching over brought conditions and needs to break $1028 and $1054 for further gains. On the lower side the earlier resistance of $1094.00 is now the support. A consolidated fall below $1094.00 will result in $1074.00.
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.

-- Posted Thursday, 30 March 2006 | Digg This Article

© 1995 - 2019

Live GoldSeek Visitor Map | Disclaimer