-- Posted Friday, 27 October 2006 | Digg This Article

GOLD	SILVER
COMEX GOLD DECEMBER FUTURE -- $597.90	COMEX SILVER DECEMBER FUTURE -- $1217.50
EXPECTED TRADING RANGE
GOLD -- $582.50 -- $618.80	SILVER -- $1182 - $1290.00
COPPER AND CRUDE OIL -- EXPECTED TRADING RANGE
COPPER DECEMBER -- $332.00 - $362.00	NYMEX CRUDE OIL  NOVEMBER  - $59.50 - $64.00
GENERAL MARKET CONDITIONS
It has been a very volatile week for gold and silver. On the Monday and Tuesday gold and silver while for the rest of the week they pared all the early week losses and edged higher. Higher crude oil prices and US dollar weakness have supported gold ad silver prices. Crude oil and the US dollar will continue to dictate the movement of gold and silver prices.   Former Fed Chairman Greenspan at a conference said that “We're beginning to see some move from the dollar to the Euro, both from the private sector, also from monetary authorities and central banks." No one knows the US dollar better than Mr. Greenspan and his view could just mark the beginning of a major US dollar depreciation which we have been commenting all through 2006 but was not happening.   Any sustained gold rise will result in higher investment demand. The laggards who have been waiting for gold to break and edge past $600 will soon start to invest as soon as there is a sustained break over $600. Right now short term traders and investors are apprehensive as gold on previous occasions has risen to $609 and thereafter fell to $570. Medium to long term bullishness remains intact for gold and silver. We still maintain $700 as the medium term target for gold.   Silver as expected continues o outperform gold. For long term silver is a better investment option. However since it is more volatile than gold, it is not recommended for low risk long term investors. Over a period of time silver will detach itself from gold as well as fluctuations in other financial markets. Silver should target $1650 over the coming months.
GOLD -- DECEMBER FUTURE
Gold is trading in wider $570 - $609 range and needs to be break and close over them for $621 and $633. Initial resistance is seen at $599 and $605.20. Support at $582.20 and $577.50 with $569.40 as the key medium term support.
SILVER -- DECEMBER FUTURE
Silver needs to break $1228 for $1290. On the lower side $1199 is the initial support and $1182 and $1157 as the key supports.
Happy Profitable Trading
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-- Posted Friday, 27 October 2006 | Digg This Article

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