-- Posted Wednesday, 17 May 2006 | Digg This Article

GOLD	SILVER
COMEX GOLD JUNE FUTURE -- $706.90	COMEX SILVER JULY FUTURE -- $1378.00
EXPECTED TRADING RANGE
GOLD -- $673.40 -- $735.30	SILVER -- $1272.0 - $1550.50
COPPER AND CRUDE OIL -- EXPECTED TRADING RANGE
COPPER JULY -- $338.00 - $498.40	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.10,800	Rs.19,200 - Rs.24,200
COPPER JULY FUTURE	CRUDE OIL MAY FUTURE
Rs.338.90 - Rs.400.80	Rs.3,140 - Rs.3,410
GENERAL MARKET CONDITIONS
The gold and silver’s is just a mere retracement is something which I had mentioned yesterday and is turning out to be reality. Gold June future pared some its losses as it reached a high of $706.30 while silver July future reached a high of $1377.00.  Gold and silver rose on the back of US dollar paring its gains and resuming its weaker trend. Higher treasury prices further supporting the cause.   There is a lot of hue and cry over the current slide and that some institutional investors in India whom I had spoken to yesterday were bearish, saying that a top has been formed and that they were waiting for further dips to enter. Indian retailers used the opportunity to fill their inventory levels in gold. The longer the US dollar depreciates the longer will be fast paced rally in gold, silver and other precious metals and base metals. The basic fundamental factors for long term bullishness remains intact so long term investors need not worry.   The only risk to precious and base metals are that of bursting or a slowdown of the Chinese economy which at the moment seems highly unlikely. The bursting of the Chinese economy will result in fall in base metals prices and any fall in any of the metals will affect gold as well as silver.   Russia is moving towards full convertibility, India has also increased the pace for moving full convertibility. When more and more developing nations as well as emerging nations like Russia and India move towards full convertibility, the value of the US dollar will take a further knock. Any depreciation of the US dollar is gold and silver supportive. The Russian full convertibility is all about crude oil and if Russian crude oil is billed in Russian then the US dollar will fall further and gold and silver rise. These changing scenarios financial and political can change the medium to long term outlook for all the financial markets and not just gold and silver. Better to use options for higher gains.
GOLD
Gold now needs to break $730.00 for $752 and $800. On the lower side the short term key support stands at $673.40 and only a daily close below the same will result in $655.90.
SILVER
Silver has managed to hold the technical congestion between $1260 and $1276 and as long as they hold on closing basis there is every possibility of $1550 - $1600. The medium term key support for silver stands at $1062. Resistances for silver are at $1392, $1425 and $1520.
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prices of specific currencies, precious metals, base metals, or equity indices reflect the views
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-- Posted Wednesday, 17 May 2006 | Digg This Article

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