-- Posted Friday, 19 May 2006 | Digg This Article

GOLD	SILVER
COMEX GOLD JUNE FUTURE -- $682.00	COMEX SILVER JULY FUTURE -- $1266.00
EXPECTED TRADING RANGE
GOLD -- $655.90 -- $720.00	SILVER -- $1169.0 - $1480.50
COPPER AND CRUDE OIL -- EXPECTED TRADING RANGE
COPPER JULY -- $338.00 - $398.40	NYMEX CRUDE OIL JUNE  - $67.80 - $73.20
MULTI COMMODITY EXCHANGE OF INDIA (MCX)
GOLD JUNE FUTURE/10 GRAMS	SILVER JULY FUTURE/KG
Rs.9,900 - Rs.10,600	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
Today’s close is very important for gold and silver. Any close below $673.40 for gold and $1234 for silver could result in a major sell next week. The successive daily higher base for gold and silver is getting lower. On Wednesday gold June futures reached a high of $720 and yesterday gold June futures reached a high of $699.50. If this trend continues today and gold and silver close lower, then it could be the beginning of a fortnightly bear rally. If there is hardly any retail ornamental demand in India as well as globally which could support a further correction in gold and silver prices. However an average Indian has woken up to the fact that higher gold prices are here to stay and he is buying physical gold to meet his future needs, be it for marriage, gifts, jewellery and so on. Physical traders are cautious at the moment to buy much more than their capacity as they know that two way movement in gold and silver prices are here to stay. (Earlier they were buying at every prices on expectations of further price hikes).   If there is a major fall in gold and silver prices, the fall will be limited to few hours or just few trading sessions. There are huge institutional buyers in the prey to buy gold and silver. The gold and silver exchange traded fund (ETF) managers will also be buying more. India is also starting a gold ETF soon. Gold demand from Indian  ETF will also be there. Large physical dealers of gold and silver in India are eager to stash gold and silver for the upcoming festival demand between August and November. According to our estimates dealers from India are willing to invest more than ten million US dollars for investment purposes in gold alone. The silver the amount in even higher as Indians are more bullish in silver than gold.   The reasons for bullishness in gold and silver are unending. There are more than an thousand reasons by gold and silver will rise in the long term and that long term investors should use the current slide to enter. There are views that higher crude oil prices will result in a move towards recession. Even recession is bullish for gold and silver. As the years progress the dependency in crude oil as fuel will reduce. What do we need to run machines, automobiles, to generate power plants etc. We need energy. The energy can come from any source. It can come from ethanol of sugarcane, from any oil, be it refined soyabean oil, mustard oil, natural gas, solar energy etc. There are more than an a hundred unidentified sources of energy in which research is being done and which will be visible up over the next few years. The rise in crude oil prices may last a few years and that it will not cause a global recession, it can cause a slowdown in global growth. There is difference between slowdown and recession. Gold and silver bullishness will not vanish like a magic wand.   Today is the weekend. There will be profit taking by the short sellers which should lift up gold and silver. We have the UN security council meeting on Iran today. Weekend factor and geopolitical factors should support gold and silver prices.
GOLD
The short term key support for gold is at $654.90 and the weekly support at $673.40   both of which have been held. Despite the bearish sentiments as long as these levels are held, the downside is limited. A close below $654.90 will result in $631.80 which is the key support. On the higher side $700.40, $706 and $713.80 and $730 are the resistance levels.
SILVER
Silver has a key short term support at $1232.50 and long as this is held on closing basis the down side is limited. On the higher side $1298, $1326, $1368 and $1420 are the resistance zones. A consolidated fall below $1232.50 will result further losses to $1179 and $1062.
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 & A great weekend.
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 Friday, 19 May 2006 | Digg This Article

© 1995 - 2019

Live GoldSeek Visitor Map | Disclaimer