-- Posted Thursday, 18 May 2006 | Digg This Article

GOLD	SILVER
COMEX GOLD JUNE FUTURE -- $686.50	COMEX SILVER JULY FUTURE -- $1308.00
EXPECTED TRADING RANGE
GOLD -- $673.40 -- $735.30	SILVER -- $1272.0 - $1550.50
COPPER AND CRUDE OIL -- EXPECTED TRADING RANGE
COPPER JULY -- $338.00 - $398.40	NYMEX CRUDE OIL JUNE  - $70.80 - $76.20
MULTI COMMODITY EXCHANGE OF INDIA (MCX)
GOLD JUNE FUTURE/10 GRAMS	SILVER JULY FUTURE/KG
Rs.9,900 - Rs.10,660	Rs.18,200 - Rs.22,800
COPPER JULY FUTURE	CRUDE OIL JUNE FUTURE
Rs.338.90 - Rs.398.80	Rs.3,180 - Rs.3,510
GENERAL MARKET CONDITIONS
It’s all about interest rates and the US dollar for gold and silver. The US dollar gained after consumer prices fell more than expected and gold and silver also fell simultaneously. The US dollar also gained from comments of French Finance Minister that while the eurozone economy could absorb the euro’s 6.5 per cent rise against the dollar of the last three weeks, he did not want to a see any further appreciation. “We must be very attentive to exchange rates,” he said. “We will do everything so that this difference doesn’t keep going.” Higher consumer prices implies that the Fed will raise interest rates in June which is supporting the US dollar. Gold June future reached a high of $720.00 in European session and silver July futures reached a high of $1398 before settling lower at $693.00 and $1324.00. Crude oil futures fell to a low of $68.10. The US dollar gained nearly 1.60% yesterday against the major currencies.   It’s also back to basic for gold and silver. Theoretically speaking lower treasury prices implies lower gold and silver prices. A stronger US dollar implies weaker gold and silver. Gold and silver are following the Dow Jones theory of moving like a drunken man after moving in a upward fashion for the past six months. The bulls have been subdued but should roar back after a brief pause.   The Iran and geopolitical issues is in the backburner for the time but can re surface in the mindset of the short term investor any time which will result in gold and silver re starting their previous weeks bull run. Crude oil prices are falling but as the US summer vacation nears, crude oil will also rise. The current slide and further slides in gold and silver are just some corrections which should be used an opportunity to go long.   If gold, silver and copper can rise for the past eleven months with a break then they can also correct. I remember on 7/7, the London Bomb blast, after the blast sport gold broke the $430.00 mark and subsequently fell to $418.00. To this date I have not seen gold falling by a single dollar, on a weekly closing basis. The correction is very healthy for the long term rally of gold and silver and provides good opportunity for long term investor to invest.
GOLD
Failure of gold to break $730.00 by next Tuesday will result in a slide to $618.00 - $622.80. For the day the initial support stands at $673.40 and a fall below the same will result in $655.40. Resistances stands at $700.40 and $722.30
SILVER
Failure on silver to hold $1248 on closing basis will result in a slide to $1060. For the day resistances stand at $1368, $1392 $1425 and $1500.
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-- Posted Thursday, 18 May 2006 | Digg This Article

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