-- Posted Wednesday, 28 June 2006 | Digg This Article

GOLD	SILVER
COMEX GOLD AUGUST FUTURE -- $586.80	COMEX SILVER SEPTEMBER FUTURE -- $1036.50
EXPECTED TRADING RANGE
GOLD -- $573.50 -- $613.40	SILVER -- $968.20 - $1120.00
COPPER AND CRUDE OIL -- EXPECTED TRADING RANGE
COPPER JULY -- $308.30 - $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.9,020	Rs.15,225 - Rs.16,600
COPPER JULY FUTURE	CRUDE OIL JULY FUTURE
Rs.316.60 - Rs.342.90	Rs.3,280 - Rs.3,450
GENERAL MARKET CONDITIONS
Yesterdays rise after Comex open and the fall towards the close suggests that traders are squaring their positions ahead of the Fed meeting. Gold August future rose to a high of $599.00 before settling lower at $584.40 while silver September future rose to a high of $1073.00 before settling at $1029.90. Major currencies are trading in a narrow range while crude oil is floating over $72.00 a barrel ahead of the US independence day holiday next week.   Gold and silver are supported by higher crude oil prices. Crude oil prices are expected to remain firm for the next three months due to higher consumption in US summer driving season, the hurricane season and the Iran nuclear issue. Higher crude oil prices will result in Fed raising interest rates in August as well. After August higher base price effect will nullify any major rise in prices and the Fed may not raise interest rates.   June Fed meeting is over hyped and once the meeting is over a major break out from the current trading range is imminent in gold and silver as well as the currency markets. The Fed will raise interest rates and the same has been priced in by the markets. US economic numbers from US do not suggest an imminent crash in retail demand. In the short term the Fed may be more vigilant on interest rates. Higher inflation and higher interest rates implies higher investment demand for gold and silver. Jewellery demand will now start to rise from India as the Indian marriage season comes to an end over the next two weeks.   Fundamental and technical factors are suggesting that the medium to long term bullishness remains intact. Any major dip in short term gold and silver prices should be used as an opportunity to go long. As long as gold hold $518 and silver $860 on a monthly closing basis the bullishness in gold and silver will not alter.
GOLD
Gold needs to break $602.80 for $613.60. 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 $972 as the key support level.
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 Wednesday, 28 June 2006 | Digg This Article

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