-- Posted Friday, 2 June 2006 | Digg This Article

GOLD	SILVER
COMEX GOLD AUGUST FUTURE -- $628.30	COMEX SILVER JULY FUTURE -- $1184.00
EXPECTED TRADING RANGE
GOLD -- $604.20 -- $658.00	SILVER -- $1060.0 - $1277.00
COPPER AND CRUDE OIL -- EXPECTED TRADING RANGE
COPPER JULY -- $326.40 - $396.30	NYMEX CRUDE OIL JULY  - $68.20 - $74.20
MULTI COMMODITY EXCHANGE OF INDIA (MCX)
GOLD AUGUST FUTURE/10 GRAMS	SILVER JULY FUTURE/KG
Rs.9,320- Rs.9,910	Rs.17,200 - Rs.19,750
COPPER JULY FUTURE	CRUDE OIL JULY FUTURE
Rs.332.80 - Rs.385.40	Rs.3,240 - Rs.3,420
GENERAL MARKET CONDITIONS
It’s better to “wait and trade” instead of “trade and wait” in this current markets. Yesterday I received I call from someone from Jullunder in Punjab, that the person had brought silver July at $1330 and asked me at $1180 whether to square of and take and reverse position. This is not the first instance that retail investors invest foolishly without a stop loss. These are new breed of retail Indian as well global investors who have been trading in gold and silver for the past six to seven months and have made money by adopting a buy first sell later strategy and have not used stop losses. These brand new investors never think that the one way traffic cannot continue for ever and that when the force of gravity acts, the speed of decline is multiple times than the pace of rise. One bad trading move can easily take away one week or even one months trading income. Therefore the emphasis is on the use of trailing stop losses. When gold and silver will show signs of bottoming out these retail investors will become bears and then once again incur losses. My experience is that most of the retail investors buy/invest in any financial market when they are nearing the peak and fund managers are sellers are those levels. Very few of them make informed decisions and use stop losses. In the end especially Indians say that speculation/satta is very bad profession. There is a very thin line of difference between speculation and investment and the definition varies from individual to individual. If one makes informed decisions then commodity markets is the only place where one can become a millionaire much earlier than any other financial market.     It’s is a combination of liquidity factors, technical factors and momentum factors that is driving gold and silver lower. When more and central banks raise interest rates there will be shrinkage in surplus global liquidity. Then the bearish momentum starts which changes the short term technical levels. Gold August future fell to a low of $625.70 yesterday before settling at $633.50. Silver July future fell to a low of $1155.00 before settling higher at $1190.50. Copper and crude oil also fell while the US dollar is week ahead of the May payroll numbers.   Iranian risk has resurfaced as World powers agreed on a package of “far reaching proposals” to encourage Iran to suspend uranium enrichment but warned of “further steps” if Tehran refused to co-operate. After talks in Vienna between foreign ministers from the five permanent members of the United Nations Security Council, plus Germany and European foreign policy chief Javier Solana, the UK’s Margaret Becket said European governments would resume negotiations with Tehran and stop action at the Security Council if it suspends all uranium enrichment and reprocessing activities. She added, however, that if Iran refuses to engage, steps would be taken at the UN. Iran, however, has already warned it would reject proposals that did not allow it to retain a small-scale enrichment capability, the process that produces nuclear fuel for reactors or atomic weapons.  It’s a weekend and traders will either go long for square off. Some shorts might also get squared off which will further support gold and silver.
GOLD
Gold can test $609.65 and the 100 day MA at $598.00. On the higher side a close over $638.00 will result in $658 and $670 next week. Traders are still using the rise to exit their long positions.
SILVER
Silver can test the 100 day MA at $1114 and key short term support at $1060. The initial support is at $1188. On the higher side $1220 is the initial resistance with $1266 and $1310 as the key resistance levels.
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, 2 June 2006 | Digg This Article

© 1995 - 2019

Live GoldSeek Visitor Map | Disclaimer