NATIONAL COMMODITIES AND DERIVATIVES EXCHANGE (NCDEX)
GOLD DECEMBER FUTURE/10 GRAMS
SILVER DECEMBER FUTURE/KG
Rs.9140- Rs.9,360
Rs.19,050- Rs.19,800
STEEL DECEMBER FUTURE
CRUDE OIL DECEMBER FUTURE
Rs.18250.00 - Rs.18800.00
Rs.2,710 - Rs.2820
GENERAL MARKET CONDITIONS
Gold continued to find buyers below $620 while silver raced higher.At lower levels there is investment demand as well as physical demand clearly suggesting the bullish sentiment. The yen gained after China's central bank said it had bought Japan's currency with its foreign exchange reserves. China has been gradually diversifying its foreign exchange reserves and the pace of diversifications seems to have been on the rise over the past few weeks. China’s diversification of its foreign exchange reserves even into other currencies will support gold and silver. If Chinese central bank buys other major currencies the carry traders will push gold and silver higher whereas any direct news diversification in gold has already pushed gold and silver and will continue to do so in future.
So far in 2006 the US dollar has not depreciated as per market expectations and the stock markets of G7 nations have also jumped sharply. The rise in global stock markets will support gold and silver as some of the profits will be invested in precious metals. It’s all about liquidity and rising stock markets will support commodity prices. The US dollar has defied market expectations and remains firm. There are still fourty trading sessions remaining in 2006 and we are still optimistic on the further greenbacks weakness.
Comex copper december future has been trading in $302 - $314 range but overall market sentiment is bearish. Markets would watch developments in Zambia where Konkola Copper Mines has suspended operations at its Nchanga open pit mine after a state body withdrew part of the company's licence in a pollution row. As a result, production of 540 tonnes a day was suspended. Some of the weakness is also due to fears that a global economic slowdown will cut demand for copper and other base metals, especially from emerging market countries such as China. China, imported 37.7 percent less refined copper and alloy in the first 10 months than in the year-ago period. Copper has lost as much as 350,000 tonnes in demand to substitution from aluminium. Base will be volatile over the next few weeks as they will be driven growth projections of global economy in 2007.
It’s a just a consolidation phase for gold, silver as well as crude oil before the next leg higher. As long as spot gold holds $611.60 on closing basis there is every possibility of $650 over the coming weeks. Crude oil’s failure to break $61.90 could result in a fall to $57 and $55.45.
GOLD -- DECEMBER FUTURE
Gold has an initial support at $621 and $614 while resistance is at $630.60, $635.10 and $642.80.
SILVER -- DECEMBER FUTURE
Silver needs to break $1335 for further gains to $1430. On the lower side $1256 and $1232 are the support levels.
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 employeeshave any liability
for any losses incurred in connection with any decision made, action or inaction taken by any
partyin reliance upon the information provided in this material; or in any delays, inaccuracies,
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: chintan@insigniaindia.com
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.
Live GoldSeek Visitor Map | Disclaimer
The views contained here may not represent the views of GoldSeek.com, Gold Seek LLC, its affiliates or advertisers. GoldSeek.com, Gold Seek LLC 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, Gold Seek LLC,
is strictly prohibited. In no event shall GoldSeek.com, Gold Seek LLC or its affiliates be
liable to any person for any decision made or action taken in reliance upon
the information provided herein.
