-- Posted Tuesday, 18 April 2006 | Digg This Article

GOLD	SILVER
COMEX GOLD JUNE FUTURE -- $621.50	COMEX SILVER MAY FUTURE -- $1363.50
EXPECTED TRADING RANGE
GOLD -- $594.30 -- $632.60	SILVER -- $1208.00 - $1410.50
COPPER AND CRUDE OIL -- EXPECTED TRADING RANGE
COPPER MAY -- $285.40 - $310.40	NYMEX CRUDE OIL APRIL  - $66.80 - $73.20
MULTI COMMODITY EXCHANGE OF INDIA (MCX)
GOLD JUNE FUTURE/10 GRAMS	SILVER MAY FUTURE/KG
Rs.8838- Rs.9350	Rs.18600- Rs.21000
COPPER MAY FUTURE	CRUDE OIL MAY FUTURE
Rs.284.35 - Rs.312.20	Rs.3050 - Rs.3325
GENERAL MARKET CONDITIONS
Silver May future rose to a high of $1368.00 while gold June futures rose to a high of $622.30 as crude oil futures pierced the $70.00 a barrel mark to $70.68. Copper May futures neared $300.00 as it rose to a high of $295.80. The US dollar has weakened against the major currencies.   Crude oil traded rose on concern that the Iranian dispute may disrupt shipments from the world's fourth-biggest producer. It's the constant talk of attacks and military action that are heightening tensions again and helping push up crude oil as well as precious metals prices. Uncertainty looms over the Iran issue and the Bush administration ploy of using pre emptive strike against any crude oil producing nation acquiring or developing nuclear weapons will only result in further gains to precious metal prices in the short and medium term prices. In the long run higher crude oil prices will be one of the self created paths of moving into recession, which will again support gold and silver prices.   The China Securities Regulatory Commission may select five brokerages to start margin financing and short-selling services this year, according to a draft plan sent to the Shanghai and Shenzhen stock exchanges. The pilot program may be expanded to other companies later, it said. The move will inject lifeblood into the stock market. It will alleviate concern that the market will be weighed down by listings of big companies. The opening of the Chinese economy as well as equity markets is good news for gold and silver bears in the long term. There is a simple logic behind the same. Global liquidity is within a range. Chinese financial markets are the least developed markets in the world. The development of Chinese financial markets will result in more flows into China. Some of these investments will through reduction of investments from emerging markets like India as well as reduction of investments from gold and silver. With every rise in gold and silver prices every quarter, the successive incremental return from gold and silver in the next quarter in annualized terms will also reduce. This will not happen overnight but may take months. The lower base of gold and silver is getting higher with every rise which is a part of the long term bull run.     Overall bullish trend remains in intact. Europe opens after a long Easter holiday. If crude oil breaks $72.00 mark we could see gold and silver competing in a F1 rally which the under dog gold and silver could win it.
GOLD
Gold targets $622.60 and $630.95. A break of $630.95 will result in $650.00 and $735.00 as the next resistance levels. On the lower side $614.30 is the initial support with $594.00 as the key short term support.
SILVER
Silver targets $1377.50 and $1400.00. On the lower side only a consolidated fall below $1247.50 will result in further loses to $1194 and $1138 and $1094 respectively.
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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
party  in reliance upon the information provided in this material; or in any delays, inaccuracies,
errors in, or omissions of Information.
Prepared By Chintan Karnani. Web Site:www.insigniaindia.com

-- Posted Tuesday, 18 April 2006 | Digg This Article

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