-- Posted Wednesday, 21 June 2006 | Digg This Article

GOLD	SILVER
COMEX GOLD AUGUST FUTURE -- $580.80	COMEX SILVER JULY FUTURE -- $1027.50
EXPECTED TRADING RANGE
GOLD -- $562.80 -- $609.40	SILVER -- $970.20 - $1133.00
COPPER AND CRUDE OIL -- EXPECTED TRADING RANGE
COPPER JULY -- $300.30 - $342.30	NYMEX CRUDE OIL AUGUST  - $67.60 - $72.20
MULTI COMMODITY EXCHANGE OF INDIA (MCX)
GOLD AUGUST FUTURE/10 GRAMS	SILVER JULY FUTURE/KG
Rs.8,510- Rs.8,910	Rs.14,950 - Rs.16,900
COPPER JULY FUTURE
Rs.303.65 - Rs.348.40	Rs.3,140 - Rs.3,3380
GENERAL MARKET CONDITIONS
Gold and silver slowly and steadily rallied after London PM fixing and just before close of US pit trading session. Gold August rose to a high of $581.00 and silver July rose to a high of $1028 before settling at $580.50 and $1027.00 respectively. The US dollar is firm while crude oil futures are still under $70.00 a barrel. Copper has also managed to hold $300.00. There is lack of major market moving news other than the North Korean missile testing issue which if escalates could result in gold and silver breaking technical resistances.   It’s about the comments after the Fed meeting towards the close of the month. Market are pricing in that the Fed will raise interest rates in August. Compare this situation to Fed June 2003 meeting where in markets were expecting to the Fed cut interest rates by 0.50% and the Fed cut interest rates by just 0.25%. The US dollar which was hammered before the June 2003 Fed meeting made a remarkable comeback in July 2003 after the Fed meeting. Gold and silver have taken a big knock before the end June 2006 meeting and will gain sharply after the Fed meeting next week. The common denominator between July 2003 US dollar gains and July 2006 expected gains for gold and silver will be Fed interest rates.   There are a thousand reasons for gold and silver to rise in the medium to long term. The risk to return ration is clearly in favour of the buyer. Even for the day traders it is still preferable to buy on sharp declines and if they follow this strategy more then more than eighty percent of the times their stop losses will not be hit. The key technical support for gold and silver have also been held and as long  as they hold, gold and silver will rise in the short term.   The Iran issue has been in the back burner and next week it may resurface. There is lack of major market economic moving news for the rest of the week. The movement in gold and silver will be technical. There will be higher physical demand as traders over the globe build up their inventory. Crude oil has formed a base at $65 a barrel and any gains in crude oil will support bullion.
GOLD
Gold slowly needs to close over $585.60, $602.80 and $613.60 to once again start its bullish run. On the lower side $572.20, $566.40 are the initial supports with $537.90 as the key term support.
SILVER
Silver needs to break $1041 and $1071 to test the key resistances at $1162 and $1246. On the lower side $1008 is the initial support with $974.00 as the key short term support.
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prices of specific currencies, precious metals, base metals, or equity indices reflect the views
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errors in, or omissions of Information.

-- Posted Wednesday, 21 June 2006 | Digg This Article

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