-- Posted Monday, 5 June 2006 | Digg This Article

 

GOLD	SILVER
COMEX GOLD AUGUST FUTURE -- $646.00	COMEX SILVER JULY FUTURE -- $1221.50
EXPECTED TRADING RANGE
GOLD -- $633.30 -- $696.00	SILVER -- $1144.0 - $1360.50
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.9,550- Rs.10,020	Rs.18,200 - Rs.20,350
COPPER JULY FUTURE	CRUDE OIL JULY FUTURE
Rs.332.80 - Rs.385.40	Rs.3,320 - Rs.3,600
GENERAL MARKET CONDITIONS
It may be an even - steven fight between bulls and bears this week. The trader sentiment in gold, silver and copper is neutral with a slightly bearish bias. Gold August and July silver have closed over the short term key technical support of $638 and $1188 respectively last week. Crude oil prices crossed $73  a barrel after Iran said U.S. action against its nuclear research program risks disrupting shipments from the Persian Gulf. The U.S. could ``seriously endanger energy flow in the region'' by acting against Iran, supreme leader Ayatollah Ali Khamenei said. There are all further bullish news for gold and silver.  The bullish factors for gold are a weaker US dollar due to less than 100K May US unemployment numbers. Crude oil prices over $70 a barrel. The European Central bank is expected to raise interest rates by a quarter of a percentage this week which will narrow the interest rate differential between US and Eurozone. Increase in Iranian risk. Holding of key short term technical support levels.  The bearish factors for gold and silver could be that the successive higher base is getting lower for the past three weeks. A weaker US job numbers could result in a sell off global equity markets which could create short term liquidity pressures in the developed nations. Euro has so far failed to break 1.30 in 2006 and if Euro fails to break 1.30 this week, there will be de-hedging the carry trade market which could negatively gold and silver prices.  The long term bullishness for gold and silver is intact. However in the short term there is a possibility of some correction if key technical supports do not hold on closing basis. The question is when to buy for the long term! All I san say is that if investors were ready to buy gold at $730 then $646.50 looks attractive. The same is with silver, if investors are ready to buy silver at $1550 then $1223 looks attractive.
GOLD
Gold needs to break $658.60 for $666.20 and $679.10. Support stands at $635.60 and $625.
SILVER
Silver needs to hold $1220 for $1277 and $1330. On the lower side $1188 is the initial support with $1060 as the key short term support.
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Disclaimer : Any opinions as to the commentary, market information, and future direction of
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-- Posted Monday, 5 June 2006 | Digg This Article

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