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-- Posted Monday, 4 December 2006 | Digg This Article

GOLD	SILVER
COMEX GOLD FEBRUARY FUTURE -- $652.80	COMEX SILVER MARCH FUTURE -- $1424.00
EXPECTED TRADING RANGE
GOLD -- $645.80 -- $664.10	SILVER -- $1384 - $1460.00
COPPER AND CRUDE OIL -- EXPECTED TRADING RANGE
COPPER MARCH -- $310.60 - $329.40	NYMEX CRUDE OIL  DECEMBER - $61.25 - $67.20
NATIONAL COMMODITIES AND DERIVATIVES EXCHANGE (NCDEX)
GOLD DECEMBER FUTURE/10 GRAMS	SILVER DECEMBER FUTURE/KG
Rs.9300- Rs.9,525	Rs.20,377- Rs.21,125
STEEL DECEMBER FUTURE	CRUDE OIL DECEMBER FUTURE
Rs.18600.00 - Rs.18800.00	Rs.2,760 - Rs.2880
GENERAL MARKET CONDITIONS
This is a very crucial week for gold, silver as well the US dollar. They have rallied after the thanksgiving as economic numbers suggest US economy statistics suggest that it is on the way to a recession and that the Fed may have to cut interest rates to boost the economy. Silver and non dollar currencies except the loonie have performed extremely well while gold has disappointed and has not risen has much. European vacationers must be very happy this Christmas as their currencies gets a higher value cutting down their costs and a stronger currency offsets the rise in gold prices. Despite the bullishness if gold and silver are able to sustain the current levels this week one should expect new highs to be created probably around New Year.   The Opec is once again giving hints of further production cuts as they feel that global inventory levels are too high. Most of the oil producing nations are socialist nation and they will want higher and higher crude oil prices to meet their country’s economic needs. They know that without crude oil, the world will come to a standstill and that new technology to give competition to crude oil will take a few more years to be implemented. Whenever crude oil prices fall by a few dollars the market hears whispers from some of the producing nations. Higher crude oil prices will result higher inflation and global interest rates. Historically most of the central bankers have not been able to handle inflationary properly and that they have raised interest rates more than justified. Higher interest rates and higher inflation is the road towards stagflation and recession.   We all know that the current global financial markets are liquidity driven. The US dollar is depreciating; commodity prices as well as the equity markets are rising endlessly. Long term have to be wary on  this front, if there is a sharp fall in global equities gold and silver will also correct. Liquidity is one of the key risks to the medium term bullish assessment on gold and silver.   This is momentum market and if one trades against the momentum all the stop losses will be hit. Once again all eyes will be on the US dollar and oil prices. At higher levels there could be a technical correction which depending upon the market conditions should be used as an opportunity to go long.
GOLD -- FEBRUARY FUTURE
Gold needs to break $668 for $692 and $730. On the lower side as long as 641.20 holds on closing basis the downside is limited.
SILVER -- MARCH FUTURE
Silver breaks $1435 then a rise to $1530 and $1667 is on the cards. On the lower side $1355 is the key support.
Happy Profitable Trading
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errors in, or omissions of Information.

-- Posted Monday, 4 December 2006 | Digg This Article

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