-- Posted Thursday, 11 May 2006 | Digg This Article

GOLD	SILVER
COMEX GOLD JUNE FUTURE -- $708.90	COMEX SILVER JULY FUTURE -- $1439.50
EXPECTED TRADING RANGE
GOLD -- $669.50 -- $720.30	SILVER -- $1313.0 - $1550.50
COPPER AND CRUDE OIL -- EXPECTED TRADING RANGE
COPPER JULY -- $340.50 - $400.40	NYMEX CRUDE OIL JUNE  - $70.80 - $76.20
MULTI COMMODITY EXCHANGE OF INDIA (MCX)
GOLD JUNE FUTURE/10 GRAMS	SILVER JULY FUTURE/KG
Rs.10,100 - Rs.10,900	Rs.20,600 - Rs.28,200
COPPER JULY FUTURE	CRUDE OIL MAY FUTURE
Rs.336.90 - Rs.388.80	Rs.3,140 - Rs.3,410
GENERAL MARKET CONDITIONS
Gold, crude oil and copper showed no signs of retracement on possibility that China will increase its gold reserves and higher crude oil prices. Copper is benefiting from strikes in various mines around the globe. Fed raised the main U.S. interest rate to 5 percent and were hawkish as they suggested that they may not be finished with the nearly two-year run of increases. Additional increases ``may yet be needed,'' the Fed said, even as the central bank forecasts economic growth to slow from the first quarter's 4.8 percent annual pace, the fastest in more than two years. The FOMC’s statement said the timing of moves will depend on data, giving itself room to pause if necessary. Gold June futures rose to a high of $711.50 while crude oil June futures rose to a high of $72.46. Copper July futures should target $425 - $450 over the coming weeks if $400.00 is broken and held.   The EIA’s latest projections suggest that prospects for an improvement in global petroleum supply and demand balance were fading. The EIA warned on that steady and continued growth in global oil demand combined with modest increases in capacity left little room to raise production in the event of geopolitical instability. Oil prices should average $68 a barrel until at least the end of 2007, the US Department of Energy said in its latest monthly report. The estimates were raised from the last monthly report, in which the Department of Energy forecast average oil prices of $65 per barrel this year and $61 for 2007.   Every body is taking about the man made geopolitical risk resulting in higher crude oil prices. Nobody is discussing the effect of man made global warming resulting in higher ocean temperatures and more natural disasters on crude oil production. The Iran factor will prevent speculators reducing their net long positions in gold, silver as well as crude oil. A Katrina, Rita or any its sisters in the Gulf of Mexico will result in crude oil prices breaking the $100 mark quite easily and simultaneously gold will break $1,000 mark.   Every tom, dick and harry investor is making quick money by buying commodities on dips. There is a huge short term hot money in gold, silver and other precious metals and base metals. Speculators are undeterred by the last two fall in gold and silver prices as they have made enough money to take risk. If and only if there is a fall in gold and silver prices for more than a week that gold and silver will see a short term bearish phase, else there will be buyers on every dips.
GOLD
Gold targets $722.40 for $735 and $782.50 for $812.50. On the lower side the earlier support of $690 is the support level with $669.00 and $652.10 as the key short term support.
SILVER
Silver has been consolidating in $1350 - $1460 range and is a sleeping giant. Silver still targets $1550- $165 over the coming weeks. Support levels are at $1425, $1390 and $1350. Resistances are at $1456, $1488, $1510 and $1578.
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-- Posted Thursday, 11 May 2006 | Digg This Article

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