Latest Headlines

Search

-- Posted Monday, 27 November 2006 | Digg This Article

GOLD	SILVER
COMEX GOLD DECEMBER FUTURE -- $641.50	COMEX SILVER DECEMBER FUTURE -- $1352.0
EXPECTED TRADING RANGE
GOLD -- $636.00 -- $651.10	SILVER -- $1320 - $1380.00
COPPER AND CRUDE OIL -- EXPECTED TRADING RANGE
COPPER DECEMBER -- $306.00 - $320.00	NYMEX CRUDE OIL  DECEMBER - $58.15 - $61.20
NATIONAL COMMODITIES AND DERIVATIVES EXCHANGE (NCDEX)
GOLD DECEMBER FUTURE/10 GRAMS	SILVER DECEMBER FUTURE/KG
Rs.9200- Rs.9,380	Rs.19,450- Rs.20,100
STEEL DECEMBER FUTURE	CRUDE OIL DECEMBER FUTURE
Rs.18600.00 - Rs.19000.00	Rs.2,660 - Rs.2760
GENERAL MARKET CONDITIONS
History has repeated itself in 2006. In 2005 Thanksgiving vacations gold and silver zoomed courtesy Japanese fund managers and Chinese demand. Euro has convincingly breached the psychological 1.30 for the first time in 2006 against the US dollar and looks headed for further gains which will support gold and silver prices.   Iraq is on the brink of a civil war after last weeks bomb blast destabilized Iraq’s internal peace. US vice president was over the weekend to ask for the help of Saudi’s to prevent further strife in Iraq. This is way of admittance by US that its Iraq policy has backfired and situation in Iraq is out of control. Crude oil as well as gold and silver will gain further due to Middle East tensions.   The Middle East is on the verge of three civil wars, in Iraq, Palestinian territories and Lebanon , unless strong action is taken urgently by the international community, Jordan's King Abdullah warned over the weekend. "We could possibly imagine going into 2007 and having three civil wars on our hands. And therefore, it is time that we really take a strong step forward as part of the international community and make sure we avert the Middle East from a tremendous crisis that I fear, and I see could possibly happen in 2007," Abdullah said. This is probably the strongest statement from the horse’s mouth as far as the Middle East crisis. There could be safe haven physical demand for gold due to the looming uncontrollable crisis.   The US dollar has a history of weakening against the major currencies in December and who knows euro and other major currencies could create record highs against the US dollar over the coming weeks. However there should be a short term spike in the US dollar as thanksgiving sales should be high due to lower crude oil prices. A weaker US dollar will continue to support bullion prices.   Zinc, copper, aluminum and other base metals are off the lows. Most of the nations have downgraded their 2007 growth forecasts except India and China. Gold and silver are delinked from base metal prices. Signs of a global slowdown could rest in higher global inventories in base metals and a short term top being formed sooner than later except zinc and molybdenum. Higher stop losses is the need of the hour as it will be more of a momentum market this week.
GOLD -- DECEMBER FUTURE
Gold needs to break $661 for further gains. On the lower side $636 and $632 are the initial supports with $621 as the key weekly support.
SILVER -- DECEMBER FUTURE
Silver needs to break $1425 for $1480 and $1536. Support at $1305 and key weekly support at $1254.
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 Monday, 27 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: chintan@insigniaindia.com

Previous Articles by Chintan Karnani, Insignia Consultants

© 1995 - 2008

Disclaimer