-- Posted Tuesday, 11 April 2006 | Digg This Article

GOLD	SILVER
COMEX GOLD JUNE FUTURE -- $605.80	COMEX SILVER MAY FUTURE -- $1282.00
EXPECTED TRADING RANGE
GOLD -- $586.30 -- $620.60	SILVER -- $1194.00 - $1310.00
COPPER AND CRUDE OIL -- EXPECTED TRADING RANGE
COPPER MAY -- $262.30 - $278.40	NYMEX CRUDE OIL APRIL  - $65.80 - $71.00
MULTI COMMODITY EXCHANGE OF INDIA (MCX)
GOLD JUNE FUTURE/10 GRAMS	SILVER MAY FUTURE/KG
Rs.8540- Rs.8925	Rs.18100- Rs.19300
COPPER MAY FUTURE	CRUDE OIL APRIL FUTURE
Rs.260.60 - Rs.275.35	Rs.2940 - Rs.3070
GENERAL MARKET CONDITIONS
Silver May future rose to a high of $1289.00 while gold June future rose to a high of $607.00 in Asian trade. Crude oil May future also neared the $70.00 mark. The US dollar and other major currencies are trading in a range.   Silver has already risen $82.00 in less than two trading sessions. Everybody is going long at the end of the day and those go short are forced to cover which acts as a fuel to the current rise. I am now being asked where is the top for silver? The technical picture suggests that silver should fall any time soon. However the momentum is so bullish it’s better to be in the market being long than short. A break $13.00 will easily result in $14.00 and $15.00 if supported by the momentum. However our view is that one should keep on booking profits even while going long and not crib that had he waited, he would have made more money. It’s all about silver ETF for silver. The more silver rises the more money will the promoter of silver ETF’s will get.  The global stock of silver is nothing as compared to gold. If prices are low the promoter of silver ETF will not get much funds in their hands. Once silver ETF gets listed, silver will fall on profit taking. However even if silver prices fall by five to ten percent from the current levels, the fall will be irrelevant considering the rise over the past two months.   Gold on the other hand has been rising due to a combination of geopolitical worries and higher crude oil prices. The answer to the Iran issue still remains a unsolved mystery. Any use of force could easily result in oil prices rising over $72.00 a barrel. The technical picture for gold is also over brought. However since spot gold has edged past $600.00 an ounce there is room for further gains. Although gold below $530.00 seems to be history, I still see a possible fall to $520.00 and below in 2006. As and when the geopolitical worries in the middle east cease, gold will see a technical correction.
GOLD
Gold targets $613.40 and $624.20. On the lower side $595.10 and $586.40 are the support zones. A consolidated fall below $586.80 will result in $578.80 as the next support level.
SILVER
Silver needs to break $1294 - $1300 zone for $1400. On the lower side $1258 is the initial support with $1194.00 as the key short term support.
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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 Tuesday, 11 April 2006 | Digg This Article

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