-- Posted Thursday, 13 April 2006 | Digg This Article

GOLD	SILVER
COMEX GOLD JUNE FUTURE -- $599.50	COMEX SILVER MAY FUTURE -- $1265.00
EXPECTED TRADING RANGE
GOLD -- $586.30 -- $620.60	SILVER -- $1208.00 - $1320.00
COPPER AND CRUDE OIL -- EXPECTED TRADING RANGE
COPPER MAY -- $268.30 - $285.40	NYMEX CRUDE OIL APRIL  - $66.20 - $71.00
MULTI COMMODITY EXCHANGE OF INDIA (MCX)
GOLD JUNE FUTURE/10 GRAMS	SILVER MAY FUTURE/KG
Rs.8540- Rs.8975	Rs.18100- Rs.19600
COPPER MAY FUTURE	CRUDE OIL APRIL FUTURE
Rs.260.60 - Rs.275.35	Rs.2960 - Rs.3180
GENERAL MARKET CONDITIONS
The Easter vacation is beginning today. Gold and silver had another terrific week as they continue to edge higher and higher with the passing each week.  Traders are either squaring their positions or go long today in a shortened trading day. The US dollar failed to make much in roads against the major currencies despite the better than expected trade balance numbers.   If crude oil prices float over $65.00 a barrel this summer, it will effect the growth of every economic zone. Consumer spending as well as confidence will fall which in turn will affect business confidence. Any reduction in consumer spending will affect the global equity markets adversely and will support treasury as well as gold and silver prices. It’s all about crude oil prices and geopolitical risk for gold and silver.   In MCX trading are still going short at higher levels only to square off. On Monday when silver may reached INR 18600 towards close, a large number of traders in Delhi went short, only to square off at INR 19200 on Tuesday morning. These traders then went long at INR 19200 only to square off at INR 18700. This kind of trading is going on not just in MCX but in Comex as well and the short covering and subsequent buying acts as fodder to the charged bull.   Overall bullish trend is expected to continue for the rest of April. If silver rises at the pace of $0.80 - $0.90 a week, then $20.00 an ounce by May seems to a possibility. Even we will be forced to revise our silver of $17.00 - $18.00 at the end of 2006 to higher levels. Once silver ETF is listed the silver scenario will change altogether. Gold is more bullish than silver. It’s better to play with the momentum and adopt a buy on dips policy. However one should be flexible to take a reverse position if the momentum fizzles out.
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 and $1208 are the initial supports with $1194.00 as the key short term support.
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Happy Profitable Trading & A Greater Easter Vacations.
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, 13 April 2006 | Digg This Article

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