-- Posted Thursday, 3 August 2006 | Digg This Article

GOLD	SILVER
COMEX GOLD DECEMBER FUTURE -- $660.40	COMEX SILVER SEPTEMBER FUTURE -- $1213.0
EXPECTED TRADING RANGE
GOLD -- $652.30 -- $699.50	SILVER -- $1152.0 - $1270.00
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.9,720- Rs.10,125	Rs.18,050 - Rs.19,600
COPPER AUGUST FUTURE	CRUDE OIL AUGUST FUTURE
Rs.352.60 - Rs.382.50	Rs.3,480 - Rs.3,620
GENERAL MARKET CONDITIONS
It’s a combination of sterling carry trade, technical break out and higher crude oil prices due to hurricane risk over the weekend that has resulted in silver and gold rising. Gold December future rose to a high of $668.20 and silver September future reached a high of $1229.00 before settling lower at $664.10 and $1224.50. Silver for one day outperformed gold.   We have the ECB and the Bank of England meeting today. The ECB is expected to raise interest rates by a quarter of a percentage. Sterling rose to a two-and-a-half month high as some traders bet that the Bank of England will surprise the market and raise interest rates today. China's central bank reiterated the government's intention to rein in the fastest economic growth in a decade and foreshadowed several measures, including greater flexibility in the currency exchange rate. A weaker US dollar and a stronger Chinese currency are all positive factors for gold and silver.   It’s difficult to comment where exactly the Israel Hezbollah tensions are headed. The longer the fighting continues, the longer will be crude oil prices over $75.00 a barrel. Then we have hurricane season in the offing. Last year on a weekend just before a close the US met department changed the rating of either hurricane Rita or Katrina from category 3 to category 5 and crude oil prices jumped just before close. These sort of category changes of hurricanes in the Gulf of Mexico will continue this year also and traders need to get to used to it for the next six to eight weeks.   Despite the bullish trend, I will still prefer to trade in technical. Gold still needs to hold $657.00 and silver $1192 on closing basis. Higher stop losses is the need of the hour as volatility will increase over the next two days. So far it has been an excellent week for gold and silver. It’s better to use a combination of bull and bear spreads along with options to hedge the risk. I always to buy call options on any sharp decline in gold and silver.
GOLD
Gold targets $672.00 and $692.00 but needs to close over $658.50 to sustain the weekly bullish momentum. On the lower side $652.50 is the initial support with $642.00 and $637.10 as the key short term support levels.
SILVER
Silver targets $1236 and $1304 as long as it holds $1162 on closing basis. On the lower side $1135 and $1125 are the key short term support levels.
Happy Profitable Trading
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-- Posted Thursday, 3 August 2006 | Digg This Article

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