-- Posted Wednesday, 3 May 2006 | Digg This Article

GOLD	SILVER
COMEX GOLD JUNE FUTURE -- $670.00	COMEX SILVER JULY FUTURE -- $1436.50
EXPECTED TRADING RANGE
GOLD -- $652.10 -- $682.70	SILVER -- $1336.50 - $1480.50
COPPER AND CRUDE OIL -- EXPECTED TRADING RANGE
COPPER JULY -- $316.80 - $352.40	NYMEX CRUDE OIL JUNE  - $71.40 - $77.20
MULTI COMMODITY EXCHANGE OF INDIA (MCX)
GOLD JUNE FUTURE/10 GRAMS	SILVER JULY FUTURE/KG
Rs.9,650- Rs.10,000	Rs.20,600 - Rs.23,200
COPPER JULY FUTURE	CRUDE OIL MAY FUTURE
Rs.304.35 - Rs.352.20	Rs.3,150 - Rs.3,525
GENERAL MARKET CONDITIONS
Bolivia’s decision to seize control of foreign-owned gas fields added is another sting in the tale of higher crude oil prices. Crude oil June futures reached a high of $74.97.  Global news towards a major potential supply disruption is coming from all parts of the globe. The summer season in the northern hemisphere has arrived. Demand for crude oil will rise over the next few months in the northern hemisphere and then the hurricane season in the Gulf of Mexico. All these news will result in new long positions being added in crude oil futures and short positions getting squared off, which is further aiding crude oil prices. At the moment it seems crude oil futures under $60.00 a barrel is history.   Gold and silver showed no signs of respite as gold june future reached a high of $671.80 while silver may future reached a high of $1439.50. Sanctions on Iran seems imminent which is precursor towards an armed attack. The weakness of the US dollar has resulted in carry traders pushing up further prices of gold and silver. Copper fell on holidays in China and Japan.   Gold, silver and other precious and base metals are melting in 2006 as prices show no signs of respite. They have room for further gains in the short term to medium term. But whenever the prices fall, it will happen at double the pace of current rise. Global interest rates are on the rise and so are the treasury yields. Sustained higher treasury yields will result in result in increased retail exposure in treasuries which will result in portfolio switching in the long term. Iran issue will be over in the next twelve months. Bank of Japan is expected to raise interest rates in 2006 which could be the beginning of further increases. The bullish trend in gold and silver is intact. However volatility will increase over the coming weeks and investors should keep on booking partial profits on their open positions so that they do not get caught in the web of higher volatility.   Momentum is bullish, technically over-brought are both gold and silver. There could be some higher volatility before the next upward trend in gold and silver. Higher stop losses is important to make the most of the volatility
GOLD
Gold targets $735.00. On the lower side $652.00 is the initial support with $636.00 and $624.00 as the key short term support levels.
SILVER
Silver targets $1500.00 for $1650. There is an initial resistance at $1452 and key resistance at $1480.00 and $1552.0. On the lower side $1338.00 is the key support; a fall below the same will result in $1270.
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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 Wednesday, 3 May 2006 | Digg This Article

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