-- Posted Tuesday, 13 June 2006 | Digg This Article

 

GOLD	SILVER
COMEX GOLD AUGUST FUTURE -- $606.00	COMEX SILVER JULY FUTURE -- $1093.00
EXPECTED TRADING RANGE
GOLD -- $588.10 -- $638.90	SILVER -- $1030.00 - $1188.00
COPPER AND CRUDE OIL -- EXPECTED TRADING RANGE
COPPER JULY -- $291.60 - $352.30	NYMEX CRUDE OIL JULY  - $68.27 - $74.20
MULTI COMMODITY EXCHANGE OF INDIA (MCX)
GOLD AUGUST FUTURE/10 GRAMS	SILVER JULY FUTURE/KG
Rs.8,920- Rs.9,360	Rs.16,000 - Rs.17,900
COPPER JULY FUTURE	CRUDE OIL JULY FUTURE
Rs.298.60 - Rs.352.00	Rs.3,220 - Rs.3,420
GENERAL MARKET CONDITIONS
Metal markets have been extremely quiet with most precious metals and base metals calmly consolidating. The next few days will be very busy as traders prepare themselves for a long list of key economic data scheduled for release from all of the major countries around the world as well as a number of Fed speeches. Bernanke’s credibility has really come to question over the past few days and will be tested even more so this week.  He is slated to speak today and if he fails to affirm his newly hawkish stance, all credibility would probably be lost.   US monthly budget statement, reported a larger deficit of $42.8 billion. Structural problems have been plaguing the US economy for years and based upon the latest figures, it is far from being resolved.  Meanwhile the hurricane season begins with warnings that the season’s first Tropical Storm Alberto could be named a hurricane.  Tropical storms in the Gulf of Mexico can easily drive crude oil prices over $84 a barrel. There is a time lag between a hurricane effect and the economic impact by way of reduction in US consumer demand and higher US imports of crude oil. If the US consumer goes, so does the US dollar. However as long as the US consumer holds on, the Fed will be able to as well, which would validate and exacerbate the greenback’s recent climb. So keep an eye on weather patterns as well as retail sales.  Gold and silver and even base metals will rise in either case. Base metals like copper, aluminum will gains as they are needed for reconstruction efforts.  Markets sentiment is bearish, but the 100 day moving average in gold is holding well. Copper is also firm. Silver is being supported by gold and copper prices else it would have fallen further. Gold and silver will be volatile as the sell off in global equity markets continue. It is the right time to buy far dated options strike price of over $800 as the premiums are very low. Intra day traders can use a combination of bull and bear spreads in futures markets for higher gains and lower risk.
GOLD
Gold needs to hold $601.10 on closing basis to prevent a fall to $588.60 and $575.20. On the higher side $618.20 is the initial resistance with $638.00 as the key short term resistance.
SILVER
Silver can fall to $1018 - $1030 zone if it fails to close over $1125. A consolidated break of $1125 will result in $1160 and $1220.
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
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.
Prepared By Chintan Karnani. Web Site:www.insigniaindia.com

-- Posted Tuesday, 13 June 2006 | Digg This Article

1080-81, Ugger Sen Street,”Somani Bhawan”
Sita Ram Bazar, New Delhi-110006. India.
Ph: [O] 91-11-30919880 [M] 09811139549
Website: www.insigniaindia.com
Email: chintan@insigniaindia.com

Previous Articles by Chintan Karnani, Insignia Consultants

© 1995 - 2019

Live GoldSeek Visitor Map | Disclaimer