-- Posted Wednesday, 26 July 2006 | Digg This Article

GOLD	SILVER
COMEX GOLD AUGUST FUTURE -- $615.10	COMEX SILVER SEPTEMBER FUTURE -- $1092.00
EXPECTED TRADING RANGE
GOLD -- $603.20 -- $637.50	SILVER -- $1041.0 - $1135.00
COPPER AND CRUDE OIL -- EXPECTED TRADING RANGE
COPPER SEPTEMBER -- $319.10 - $352.30	NYMEX CRUDE OIL AUGUST  - $72.65 - $78.10
MULTI COMMODITY EXCHANGE OF INDIA (MCX)
GOLD AUGUST FUTURE/10 GRAMS	SILVER SEPTEMBER FUTURE/KG
Rs.9,240- Rs.9,670	Rs.16,650 - Rs.17,700
COPPER AUGUST FUTURE	CRUDE OIL AUGUST FUTURE
Rs.332.60 - Rs.372.90	Rs.3,420 - Rs.3,650
GENERAL MARKET CONDITIONS
Gold and silver are consolidating at the moment. Expectations of an early end to the Israel Lebanon clashes resulted in marginally lower gold, silver and crude oil prices. The US dollar gained after rise in consumer confidence ignoring Chinese central bank warning of reducing US dollar reserves. Copper rose after a potential labour strike in worlds biggest mine Escondida and Codelco, said that a July 23 rockslide at its largest mine may reduce output by 1,000 metric tons day. Gold August future settled at $618.00 while silver July future settled at $1094.50.   China’s National Bureau of Statistics said that they “should speed up the pace of diversification of (their) country’s foreign exchange reserves to help resolve the risk of possible losses to the dollar assets in the reserves.”  As the world’s second largest holder of US dollar reserves, China is estimated to own $650 to $750 billion US dollars.  Their message of dumping US dollars is clear and poses a big risk to further dollar strength. China is increasing its gold reserves and will continue to do so which another reason for gold and silver bullishness.   We have been mentioning that the world is moving away from a US dollar standard to a gold standard and it is one of the prime reasons for being bullish in the coming years. US can attack crude oil producing nations under any pretext, but new technology is coming up which will reduce the dependence on crude oil. If crude oil is not billed in US dollar then US dollar will be like any other currency so US policy of attacking countries which are rich in crude oil, the best place middle east.   I would still prefer to buy on sharp declines for gold and silver. The only is risk to short term gold and silver bullishness is that of lower crude oil prices. Nearly 8% to 10% of the crude oil prices is geopolitical risk premium and hurricane premium and if any of the factors do not happen, say there are not major hurricanes in the Gulf of Mexico till November, crude oil as well gold and silver will fall. However demand factors will prevent crude oil as well as gold and silver from a sharp decline.
GOLD
Gold needs to hold $618.80 for 628 and $637. A consolidated break of $637 will result in re test of short term resistance at $645.00. The technical congestion at between $609.0 and $609.80 has been held on closing and gold needs the hold on to $609.15 at close today.
SILVER
Silver looks solid as long as it holds $1041. Silver should break out of the recent trading range soon of $1068 - $1135 zone. $1172 and $1012 are the key resistance and support levels.
Happy Profitable Trading
For SMS and Yahoo support please mail at sms@insigniaindia.com
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, 26 July 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