-- Posted Tuesday, 1 August 2006 | Digg This Article

GOLD	SILVER
COMEX GOLD DECEMBER FUTURE -- $647.00	COMEX SILVER SEPTEMBER FUTURE -- $1144.00
EXPECTED TRADING RANGE
GOLD -- $634.30 -- $659.50	SILVER -- $1108.0 - $1198.00
COPPER AND CRUDE OIL -- EXPECTED TRADING RANGE
COPPER SEPTEMBER -- $352.40 - $378.30	NYMEX CRUDE OIL AUGUST  - $72.65 - $78.10
MULTI COMMODITY EXCHANGE OF INDIA (MCX)
GOLD OCOTBER FUTURE/10 GRAMS	SILVER SEPTEMBER FUTURE/KG
Rs.9,620- Rs.9,910	Rs.17,300 - Rs.18,200
COPPER AUGUST FUTURE	CRUDE OIL AUGUST FUTURE
Rs.352.60 - Rs.382.50	Rs.3,380 - Rs.3,510
TRADING TIP OF THE DAY
SILVER IS A SLEEPING DRAGON, STOP LOSSES WILL BE USELESS
GENERAL MARKET CONDITIONS
Gold and silver are consolidating but are finding sellers are higher levels. The US dollar is also trading in a range against the major currencies as lower growth in US economy gets slowly factored in by the markets. Copper is rising on concern Chile's Escondida, the world's biggest copper mine, will be shut by a strike next week, and reducing global inventory. Most of the companies around the globe will start preparing soon for the thanksgiving and Christmas demand from September. Copper and base metals demand will pickup and if strikes in copper mines in different parts of the world continue then copper could create another record high.   Crude oil prices are stronger after Russia’s Druzhba oil pipeline, the supplier of an eighth of Europe's imports, sprung a leak near the Belarus border, spilling crude over at least 10 square kilometers. Continuing tension in the Middle East has increased concern about strains on the export network of Russia. European leaders said this month that Russia, which is planning a new $11.5 billion oil link to China, may not be investing enough in output and pipelines to ensure reliable supplies. Maintenance work in some of the US refineries is also supporting crude oil prices.   Gold and silver are forming a support base. Gold December future has a support base between $622 - $625 and silver September future has a support base between $1090 - $1100 and both are poised for further gains. However short term traders should not be too heavily long till December gold breaks and closes over $658.00 and September silver over $1075.  Instead short term traders should keep on booking fifty percent profit on their long positions and at the same time buy on sharp declines.  The spread between spot gold and gold December future is widening which suggest that more and more investors are buying December in anticipation of $750/$800 by the year end. Gold and silver are bullish, however our view is that one should keep on rotating their investments partially in gold and silver for higher returns.   There could be sellers at higher levels due to the ECB and Fed meeting over the next eight days. This is resulting in traders remaining on the sidelines. After the June 29, Fed meeting, gold edged past the $600 mark, on 9th August gold could near $700, depending on the accompanying Fed statement and interest rate stance.
GOLD
A close over $658.50 will result in $688.  On the lower side $637.10 and $632.30 are the initial support level with $622.40 and $619.40 as the key short term support. As long as gold holds the technical congestion between $614.15 and $614.80 on closing basis the downside is limited.
SILVER
A close over 1174.00 will result in $1236.50 and $1304 next week. On the lower side $1120.00 and $1090 are the initial support levels with $1071 as the key support level.
Happy Profitable Trading
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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
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errors in, or omissions of Information.

-- Posted Tuesday, 1 August 2006 | Digg This Article

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