Advertise | Bookmark | Contact Us | E-Mail List |  | Update Page | UraniumSeek.com 

Commentary : Gold Stock Review : Markets : News Wire : Quotes : Radio : Silver : Stocks - Main 
  
 GoldSeek.com >> News >> Story

 Disclaimer 

Latest Headlines


Gold Seeker Weekly Wrap-Up: Gold and Silver End Higher on the Week
By: Chris Mullen, Gold-Seeker.com

Ira Epstein & Company Weekly Metal Report
By: Ira Epstein

The Worldwide Consumer Shellacking
By: Bill Bonner & The Daily Reckoning Crew

South African Gold Shares – a good place to invest or not?
By: Julian D. W. Phillips, Gold/Silver Forecaster - Global Watch

Gold Retreats Following ECB Rate Hike
By: Peter A. Grant, USAGOLD

Soft Commodities: Meats
By: Scott Wright, Zeal Intelligence LLC

Scorched Earth Economy
By: David Galland, Managing Director, Casey Research, LLC

Profit From Fed-Catalyzed Crises
By: Deepcaster

Gold Retouches Week's Highs as Dollar Loses to Oil, Euros, Soybeans & Copper; Dow Hits Technical Bear Market
By: Adrian Ash, BullionVault

International Forecaster July 2008 (#1) - Gold, Silver, Economy + More
By: Bob Chapman, The International Forecaster


Search

GoldSeek Web



 
Asian Metals Market Update for 10th November, 2006



By: Chintan Karnani, Insignia Consultants


-- Posted Friday, 10 November 2006 | Digg This ArticleDigg It!

GOLD

SILVER

COMEX GOLD DECEMBER FUTURE -- $635.20

COMEX SILVER DECEMBER FUTURE -- $1308.0

 EXPECTED TRADING RANGE

GOLD -- $630.00 -- $647.70

SILVER -- $1277 - $1340.00

COPPER AND CRUDE OIL -- EXPECTED TRADING RANGE

COPPER DECEMBER -- $328.00 - $343.00

NYMEX CRUDE OIL  NOVEMBER  - $57.00 - $61.72

NATIONAL COMMODITIES AND DERIVATIVES EXCHANGE (NCDEX)

GOLD DECEMBER FUTURE/10 GRAMS

SILVER DECEMBER FUTURE/KG

Rs.9182- Rs.9,360

Rs.19,000- Rs.19,800

STEEL DECEMBER FUTURE

CRUDE OIL DECEMBER FUTURE

Rs.18400.00 - Rs.19000.00

Rs.2,710 - Rs.2820

GENERAL MARKET CONDITIONS

 Finally the US dollar has started to fall, crude oil prices have started to rise. Markets were filled with reports that China will diversify its foreign exchange reserve away from the US dollar. China has nearly $1 trillion foreign exchange reserves, seventy percent of which are in US dollars. If China diversifies gold and silver will zoom. I prefer to adopt a buy on dips strategy at the current levels but will prefer to book partial profits on long positions till gold does not break $668 convincingly. Volatility will only rise over the coming weeks. It will be more of a momentum play, one day gold falls only to rise the next day. Intra day traders need to be patient and have higher stop losses.

 

 

Gold has a geopolitical risk premiums attached to it. The trend is no doubt bullish in the medium term to long term. The democrats have gained a majority in US Senate. Under the regime of republicans or George Bush over the past seven years geopolitical risk globally has increased significantly. Terrorist still strike anywhere, despite high level of intelligence coordination among nations. If the there is a sustained reduction in geopolitical risk over a period of time under the democrats then gold could correct. Gold is also a hedge against inflation. Higher base effect will nullify the commodity induced inflation in 2007(unless crude oil floats over $80 in remaining 2006). Reduction in inflation will reduce inflation related demand. These are a few negative factors for gold and silver.

 

Higher commodity prices should result in a decline in global savings rate and simultaneously a reduction in global liquidity in 2007. The percentage of expenditure on food has increased significantly. Wheat, orange juice, soyabean and host of other agricultural commodities have increased nearly 15% over the past one year.  Global warming along with higher hedge fund interest has resulted sharp increases in food bill for the man on the street. Higher food cost affects savings as well liquidity. The part of the current price of gold includes liquidity premium and shrinkage in global liquidity will affect the pace of rise of gold and silver but not the rise.

 

In MCX and NCDEX gold and silver prices have not risen as much because of the continuous appreciation of the rupee over the past four months. MCX and NCDEX traders need a keep a close watch on the rupee as any weakness in the will result in prices rise even if the spot prices remain the same.

 

GOLD -- DECEMBER FUTURE

  A close over $635.10 today will result in $657.20 and $679.90 over the coming fortnight. Initial support is at $630.0 and $626 with $618.80 as the key support.

 

SILVER -- DECEMBER FUTURE

  Silver needs to break $1335 for $1430 and $1520. Support at $1290, $1277 with key support at $1256.

 

 

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 Friday, 10 November 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:





 



Increase Text SizeDecrease Text SizeE-mail Link of Current PagePrinter Friendly PageReturn to GoldSeek.com

 news.goldseek.com >> Story

E-mail Page  | Print  | Disclaimer 



© 1995 - 2008


© GoldSeek.com, Gold Seek LLC


GoldSeek.com Supports Kiva.org

The content on this site is protected by U.S. and international copyright laws and is the property of GoldSeek.com and/or the providers of the content under license. By "content" we mean any information, mode of expression, or other materials and services found on GoldSeek.com. This includes editorials, news, our writings, graphics, and any and all other features found on the site. Please contact us for any further information.

Disclaimer

The views contained here may not represent the views of GoldSeek.com, its affiliates or advertisers. GoldSeek.com makes no representation, warranty or guarantee as to the accuracy or completeness of the information (including news, editorials, prices, statistics, analyses and the like) provided through its service. Any copying, reproduction and/or redistribution of any of the documents, data, content or materials contained on or within this website, without the express written consent of GoldSeek.com, is strictly prohibited. In no event shall GoldSeek.com or its affiliates be liable to any person for any decision made or action taken in reliance upon the information provided herein.
OilSeek.com