-- Posted Monday, 23 October 2006 | Digg This Article

GOLD	SILVER
COMEX GOLD DECEMBER FUTURE -- $594.90	COMEX SILVER DECEMBER FUTURE -- $1190.00
EXPECTED TRADING RANGE
GOLD -- $582.60 -- $609.80	SILVER -- $1152 - $1262.00
COPPER AND CRUDE OIL -- EXPECTED TRADING RANGE
COPPER DECEMBER -- $342.00 - $370.00	NYMEX CRUDE OIL  NOVEMBER  - $57.50 - $64.00
MULTI COMMODITY EXCHANGE OF INDIA (MCX)
GOLD DECEMBER FUTURE/10 GRAMS	SILVER DECEMBER FUTURE/KG
Rs.8,600- Rs.9,008	Rs.17,301 - Rs.18,500
COPPER NOVEMBER FUTURE	CRUDE OIL NOVEMBER FUTURE
Rs.343.00 - Rs.362.00	Rs.2,680 - Rs.2840
GENERAL MARKET CONDITIONS
It all boils down to crude oil and the US dollar for gold and silver. Physical demand for jewellery and gifts from Asia will reduce as Diwali and Eid festivals end. Crude oil prices are volatile and traders are confused whether to follow the Opec or the technical charts. Opec is desperately trying to curb the fall in crude oil prices. The crude oil producing nations have got used to higher prices and that even a slight short term fall in prices seems to be unbearable to them. They are desperately trying to curb the prices. When speculative interest in any commodity falls, prices will near fundamentals. This is happening with crude oil prices. Crude oil December future has a strong support at $59.00 and a daily close below the same will result in losses to $57.50 and $55.00 respectively. Upside remains limited to $64.00   Gold and silver are in neutral zone. There is an even - steven fight between bull and bears. The first four and half months of 2006 were dominated by the bulls and the rest by bears. In our view unless there is a technical break out, this fight will continue. Crude oil prices should bottom out soon and global inflation should rise once again on higher consumer spending. Gold and silver should see an increase in investment demand over the coming weeks despite liquidation of long positions by short term traders. Hedge-fund managers and other large speculators reduced their net-long position in comex gold futures in the week ended October 17 to the lowest in more than a year.   Gold and silver could jump next month after the US Congressional elections next month, especially if the Democrats win. A democrat win will create turbulence in the US equity as bond markets which result in short term hot money flowing into gold, silver and other commodities. The Fed is expected to pause interest rates this week as US economy slows down, any drastic change in the accompanying statement will increase volatility to gold and silver. This is not a market for $2-$3 trading, average volatility in gold has been over $10 in 2006 and day traders should trade in this range and prevent stop losses from being hit.
GOLD -- DECEMBER FUTURE
Gold needs to break $601.40 and $605.20 and $615. On the lower side $590.50 and $582.20 are the key support levels.
SILVER -- DECEMBER FUTURE
Silver needs to break $1220 for $1290. On the lower side $1157 is the key weekly support with $1122 as the key short term support.
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prices of specific currencies, precious metals, base metals, or equity indices reflect the views
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errors in, or omissions of Information.

-- Posted Monday, 23 October 2006 | Digg This Article

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