-- Posted Tuesday, 25 April 2006 | Digg This Article

GOLD	SILVER
COMEX GOLD JUNE FUTURE -- $626.10	COMEX SILVER MAY FUTURE -- $1201.00
EXPECTED TRADING RANGE
GOLD -- $604.30 -- $660.60	SILVER -- $1101.00 - $1350.50
COPPER AND CRUDE OIL -- EXPECTED TRADING RANGE
COPPER MAY -- $308.40 - $400.40	NYMEX CRUDE OIL JUNE  - $70.40 - $80.60
MULTI COMMODITY EXCHANGE OF INDIA (MCX)
GOLD JUNE FUTURE/10 GRAMS	SILVER MAY FUTURE/KG
Rs.8,950- Rs.9,800	Rs.16,500 - Rs.23,500
COPPER MAY FUTURE	CRUDE OIL MAY FUTURE
Rs.304.35 - Rs.330.20	Rs.3,150 - Rs.3,550
GENERAL MARKET CONDITIONS
Silver was more volatile yesterday as May futures fell briefly breached the $13.00 mark only to fall to $1160.00 mark. Silver is a historically volatile commodity to trade and old traders are used to such volatility. It’s the new bunch of retail traders who have started getting indigestion problems as they never seen such high volatility. There will be bouts of these volatility in silver, but the overall bull trend will continue. Gold on the other hand is lame duck as it trades in $620.00 - $640.00 range. Funds are investing more and more money into precious metals as well as base metals on dips. It’s the short term trades which enter and exits for a quick buck which is adding volatility in silver. Copper and Zinc are the best performer in the base metals, however aluminum should outperform all the base metals this summer.   The verbal duel between Iran and rest of the world continues as Israel says that Iran is the biggest threat since the Nazis. Then Iranian leaders exiting the NPT treaty and also ignore the UN security council deadline. Gold and silver fell yesterday after Iranian foreign minister said that they could compromise on the uranium enrichment. The Bush administration on its part is lobbying hard and sending its envoys to countries in middle east and Europe before sanctions are finalized or a armed attack is resorted. It seems both US and Iran are buying time. Geopolitical uncertainties implies higher gold, silver and precious metal prices.   US President Bush, “it will be a tough summer for US consumers.” The Opec leaders have raised their hands and said that they cannot control crude oil price rise. The crude oil producing nations are socialist countries and they will never want a reduction in crude oil prices. If and when crude oil prices over the coming weeks near $60 a barrel, its same leaders who will be saying that prices are unacceptable. The oil producing tigers have tasted the blood of higher prices and their hearts want more. The end result in higher gold and silver prices.   There were some traders who are  writing off gold and silver and expect that the top has been formed. We expect new highs to be created both in gold as well as silver over the coming weeks. Have the patience and waiting for a bottom to be formed in silver and gold and invest for the long term. Levels for investing in long term gold and silver are nearing.
GOLD
As long as gold holds $623.60 and $614.10 on closing basis the downside is limited. A consolidated fall below $614.10 will result in $593.80 and key medium term support at $583.70. On the higher side $638.40 is the initial resistance with $652.00 - $655.00 as the key resistance.
SILVER
As long as long as silver holds $1172.50 on closing basis, the downside will be limited. A consolidated fall below $1172.50 will result in $1160.00 and $1101.00. If these levels are not held then a test of key short term resistance of $1062 could be on the cards. On the higher side $1220.00 and $1246.50 are the initial resistance with $1328.00 as the key short term resistance.
For SMS service on MCX & NCDEX trading strategies, please mail sms@insigniaindia.com
For Multi Commodity Exchange of India (MCX) reports as well as NCDEX reports on
metals as well as agri commodities please register at www.insigniaindia.com/register.asp
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, 25 April 2006 | Digg This Article

1080-81, Ugger Sen Street,”Somani Bhawan”
Sita Ram Bazar, New Delhi-110006. India.
Ph: [O] 91-11-30919880 [M] 09811139549
Website: www.insigniaindia.com
Email: chintan@insigniaindia.com

Previous Articles by Chintan Karnani, Insignia Consultants

© 1995 - 2019

Live GoldSeek Visitor Map | Disclaimer