-- Posted Wednesday, 13 September 2006 | Digg This Article

GOLD	SILVER
COMEX GOLD DECEMBER FUTURE -- $588.20	COMEX SILVER DECEMBER FUTURE -- $1111.00
EXPECTED TRADING RANGE
GOLD -- $566.50 -- $610.00	SILVER -- $1062.0 - $1212.00
COPPER AND CRUDE OIL -- EXPECTED TRADING RANGE
COPPER DECEMBER -- $324.00 - $346.30	NYMEX CRUDE OIL OCTOBER  - $61.80 - $66.40
MULTI COMMODITY EXCHANGE OF INDIA (MCX)
GOLD OCOTBER FUTURE/10 GRAMS	SILVER DECEMBER FUTURE/KG
Rs.8,620- Rs.9,100	Rs.16,600 - Rs.18,100
COPPER NOVEMBER FUTURE	CRUDE OIL SEPTEMBER FUTURE
Rs.339.00 - Rs.358.00	Rs.2,920 - Rs.3,080
GENERAL MARKET CONDITIONS
Nothing seems to be working for gold, silver and other metals as continue to fall. Crude oil below $64 a barrel after IEA said that Global oil demand will average 84.7 million barrels a day this year, 100,000 barrels less than was forecast last month. Opec has refrained from cutting crude oil output despite the fall and it remains to be seen if $60 holds. International community is just concerned about US demand for crude oil as crude oil is traded in Nymex. With rise in per capita income and every increasing population, crude oil demand from Asian nations and other developing nations will keep on rising. Demand pressures on crude oil will persist, it just that speculative portion will reduce and prices will now be more in line with fundamentals. As far as IEA is concerned it has the uncanny habit of making a U turn on its forecasts.   Global economy is moving from deflation to inflation to stagflation to recession. This is a chain which is experienced once in a century. We are now in a inflationary zone and moving towards stagflation and recession over the coming years. Gold is the best hedge against stagflation as well as recession. Over the past few years it is the Chinese growth which has been the key driver to global growth. The world is switching from dependence on US for growth to other nations. Hence the fall of the US dollar is imminent. Global growth should slow down over the coming year as China slows. A slowdown in Chinese growth has resulted in base metal prices falling and also precious metals. There is a difference between long term and short term views. In the short term gold and silver may fall further as they have fallen below their key technical levels and there is a remote possibility to testing key long term supports of $528 and $880 for gold and silver.
GOLD -- DECEMBER FUTURE
Gold has a support at $578.40 and $567.30. On the higher side $598 and $607 are the resistance zone.
SILVER -- DECEMBER FUTURE
Silver needs to hold $1102 to prevent a fall to $1062 and $980. On the higher side $1137 is the initial resistance with $1212 as the key short term resistance.
Happy Profitable Trading
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-- Posted Wednesday, 13 September 2006 | Digg This Article

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