-- Posted Monday, 26 June 2006 | Digg This Article

GOLD	SILVER
COMEX GOLD AUGUST FUTURE -- $587.50	COMEX SILVER JULY FUTURE -- $1030.00
EXPECTED TRADING RANGE
GOLD -- $573.50 -- $613.40	SILVER -- $968.20 - $1120.00
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.8,560- Rs.9,060	Rs.15,225 - Rs.16,600
COPPER JULY FUTURE	CRUDE OIL JULY FUTURE
Rs.312.65 - Rs.352.90	Rs.3,140 - Rs.3,3380
GENERAL MARKET CONDITIONS
It’s the Fed week and the comments after the FOMC meeting will determine the direction for July. Markets have priced in a 25 bps hike in interest rates and are now slowly factoring in for an interest rates hike in August as well. Crude oil continues to float over $70.00 a barrel. Euro is on the edge and trading near the key technical support of 1.2525. A potential terror strike in US was averted last Friday was resulted in a very volatile session with gold and silver trading rising. There has not been a major terror threat since 7/7 in the developed nations. (Terror attacks in India and other developing nations do not effect global financial markets, hence irrelevant).   It’s once again a combination of geopolitical threats and higher crude oil prices that will support gold and silver prices. Physical demand and long term investment demand for gold and silver should start this week. Interest rate factors have been priced in by the markets. The US dollar does not have much room for gains against the major currencies which will support gold and silver prices and higher carry trades. There could be some profit taking in gold and silver ahead of the Fed meeting which could drag down prices. But the fall in gold and silver prices are buying opportunities. In our view all factors are pointing that gold and silver should bottom out this week and the lowest prices this week may not there for the rest of 2006. I am sounding very optimistic but we need to trade in the short term with a long term picture for the moment. Low risk traders can buy call options of varying prices and maturities.   Silver and copper July futures are expiring this week. The rollover over is yet to he completed and the spreads between July futures and September futures will rise till Wednesday and thereafter fall.
GOLD
Gold needs to break the 100 day MA at $602.80.; Initial support stands at $585.00 and $577.40 with $566.40 as the key intra day support.
SILVER
Silver needs to break and close over $1041.00 for $1071 and $1110.00. On the lower side $1008 is the initial support with the 200 day MA at $968 as the key support level.
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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.

-- Posted Monday, 26 June 2006 | Digg This Article

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