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-- Posted Tuesday, 3 October 2006 | Digg This Article

GOLD	SILVER
COMEX GOLD DECEMBER FUTURE -- $601.50	COMEX SILVER DECEMBER FUTURE -- $1162.00
EXPECTED TRADING RANGE
GOLD -- $596.60 -- $618.40	SILVER -- $1132 - $1260.00
COPPER AND CRUDE OIL -- EXPECTED TRADING RANGE
COPPER DECEMBER -- $334.00 - $360.30	NYMEX CRUDE OIL  NOVEMBER  - $59.70 - $64.70
MULTI COMMODITY EXCHANGE OF INDIA (MCX)
GOLD DECEMBER FUTURE/10 GRAMS	SILVER DECEMBER FUTURE/KG
Rs.9,040- Rs.9,420	Rs.17,650 - Rs.19,100
COPPER NOVEMBER FUTURE	CRUDE OIL OCTOBER FUTURE
Rs.342.00 - Rs.362.00	Rs.2,760 - Rs.3000
A combination of lower crude oil prices and a weaker US dollar is pushing gold and silver. Crude oil prices have failed to break $64 mark after doubts over Opec output cuts resulted in squaring of long positions. It’s a new quarter and over the next three months we expect volatility in currency markets to rise and an increase in US dollar short positions. A weaker US dollar should benefit gold and silver.   One of the prime concerns for commodity rally to bust is the slowdown in Chinese economy. Chinese economy is manufacturing led export growth and is slowly moving towards less dependency on exports and more on domestic demand. Indian economy is just the reverse of China. It is a domestic demand led growth and is moving towards greater exports Indian and Chinese economy will continue to grow at the fastest pace. This is result in greater demand for base metals as well energies. Higher commodity prices will result in higher inflation and interest rates. Gold and silver are the best bet against under uncertain economic circumstances. In the short term there could be further losses in gold and silver which are nothing but buying opportunities.   India was closed yesterday. Bunched demand in the festive season will prevent gold and silver from falling. Crude oil futures are trading $60-$64 range and it remains to be seen if $60 holds. Silver is an industrial cum precious metals and will continue to find demand at lower levels.
GOLD -- DECEMBER FUTURE
As long as $598.50 holds on closing basis the downside is limited for gold. On the higher side gold needs to break $614 for further gains to $521. Only a consolidated fall below $598.50 will result in retest of $586.50.
SILVER -- DECEMBER FUTURE
As long as silver holds $1137 on closing basis, the downside is limited. On the higher side $1192 and $1220are the initial resistance levels with $1242 as the key short term resistance. Only a consolidated fall below $1137 will result in retest of $1106.
Happy Profitable Trading
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prices of specific currencies, precious metals, base metals, or equity indices reflect the views
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-- Posted Tuesday, 3 October 2006 | Digg This Article

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