-- Posted Tuesday, 21 November 2006 | Digg This Article

GOLD	SILVER
COMEX GOLD DECEMBER FUTURE -- $624.30	COMEX SILVER DECEMBER FUTURE -- $1282.00
EXPECTED TRADING RANGE
GOLD -- $618.00 -- $632.10	SILVER -- $1256 - $1320.00
COPPER AND CRUDE OIL -- EXPECTED TRADING RANGE
COPPER DECEMBER -- $298.00 - $315.00	NYMEX CRUDE OIL  DECEMBER - $55.00 - $60.65
MULTI COMMODITY EXCHANGE OF INDIA (MCX)
GOLD DECEMBER FUTURE/10 GRAMS	SILVER DECEMBER FUTURE/KG
Rs.8,990- Rs.9,170	Rs.18,800 - Rs.19,500
COPPER NOVEMBER FUTURE	CRUDE OIL DECEMBER FUTURE
Rs.296.00 - Rs.314.00	Rs.2,590 - Rs.2730
GENERAL MARKET CONDITIONS
It’s consolidation time for gold and silver. However gold has been unable to break $630 and silver has been unable to break $1320-$1335 range. The currency markets are also trading in a range on lack of market moving news. The precious metal is being lead by platinum which hit at record $1338 an ounce yesterday driven by talks of a launch of an Exchange Traded Fund.   In India gold has a greater physical demand is higher below $618. Demand from Indian is relatively stable but should rise over the next month as the marriage season starts. Physical demand in China is on the rise. Retail investors are buying rocks of gold rise among other forms of gold investment in China. Part of the interest in gold in China is due to talks that China's central bank could diversify its $1 trillion in foreign exchange reserves away from the U.S. dollar. Bank of China will launch gold options in mid-December. The product allows dollar-denominated account holders to buy or sell to the bank at prices pegged to international gold prices, with settlement at a future date. New investment products, such as the one at Bank of China, drove Chinese consumption of gold for retail investment to 2.5 tonnes in the third quarter. Chinese consumption of gold for jewellery rose by 1 percent during the period to 60.4 tonnes. Chinese gold consumption in the first nine months was 186.7 tonnes, compared with 253.1 tonnes for all of 2005, according to the World Gold Council. Retail investment demand made up 4.6 percent of China's consumption in 2005, but slid slightly to 4.3 percent in the first nine months of this year. Demand factors will continue to support gold and silver from a major slide. However gold failure to break $630 could result in a fall to $606.     Gold will continue to be linked to the US dollar as well as crude oil prices. Silver is a sleeping dragon. Copper and zinc have managed to hold on to their key long term supports and if they are able to hold to the same for the rest of the month we could see new highs over the coming months.
GOLD -- DECEMBER FUTURE
Gold needs to break $632.20 for $639.30 and $657.30. On the lower side $613.90 and $606.60 are the key supports.
SILVER -- DECEMBER FUTURE
Silver’s failure to break $1325 will result in a slide to $1256 and $1234. Only a consolidated break of $1325 will result in further gains to $1360 and $1425.
Happy Profitable Trading
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-- Posted Tuesday, 21 November 2006 | Digg This Article

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