-- Posted Tuesday, 12 September 2006 | Digg This Article

GOLD	SILVER
COMEX GOLD DECEMBER FUTURE -- $600.70	COMEX SILVER DECEMBER FUTURE -- $1142.00
EXPECTED TRADING RANGE
GOLD -- $586.50 -- $621.00	SILVER -- $1108.0 - $1320.00
COPPER AND CRUDE OIL -- EXPECTED TRADING RANGE
COPPER DECEMBER -- $339.00 - $362.30	NYMEX CRUDE OIL OCTOBER  - $64.60 - $70.20
MULTI COMMODITY EXCHANGE OF INDIA (MCX)
GOLD OCOTBER FUTURE/10 GRAMS	SILVER DECEMBER FUTURE/KG
Rs.8,940- Rs.9,380	Rs.17,800 - Rs.19,300
COPPER NOVEMBER FUTURE	CRUDE OIL SEPTEMBER FUTURE
Rs.339.00 - Rs.372.00	Rs.2,920 - Rs.3,180
GENERAL MARKET CONDITIONS
There is lot of buzz that the commodity bust is underway which in our opinion will not be case. The first phase of the long term bull run is over, we are in the second phase where there will be greater volatility and that the current slide (and further slide, if any) is part and parcel of long term bull rally. Year on year gold and silver are both higher and will continue to be for the rest of 2006. If one had brought gold in September 2005, he is still getting a positive return. Gold, silver or commodities are relatively new asset classes. So investor nervousness on any major fall is logical. Compare the investment in commodities with equities. If net worth in equities get eroded by 40% -50% in any year investors are less worried if fundamentals of the company are strong. Gold and silver are asset classes whose fundamentals are very strong. It’s was excess liquidity which drove gold and silver berserk in the first five months of 2006. In future the rise in gold and silver will not be a one way traffic. New investors and traders now have experienced that gold and silver can also fall and that they are not invincible. Central bank still need to sell nearly 170 tonnes of gold which is the prime reason for current fall. Once the sales are over and demand pressures begin gold and silver will see a steady rise. We still prefer silver as a better bet for long term investment as it is never under the scanner of central banks.   Yesterday, in India a large number of investors were seen averaging their long term investments. Few of the long term investors squared off while most of them held on to investments. Investors are yet to panic. The current slide has resulted in more short position being created at higher levels and if gold and silver do not fall further, the shorts positions will be squared which could start another bull run. Economic numbers starts to trickle from today. There will be greater volatility from today as the one way of traffic of the US dollar should come to an end.
GOLD -- DECEMBER FUTURE
Gold needs to hold $596.40 on closing basis to prevent a slide to $586.50 and $578.80. On the higher side $609 is the initial resistance with $618.80 as the key short term resistance.
SILVER -- DECEMBER FUTURE
Silver needs to hold $1135 and $1108 on closing basis to prevent further losses. On the higher side $1236 is the initial resistance with $1320 as the key resistance.
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 Tuesday, 12 September 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