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-- Posted Wednesday, 13 December 2006 | Digg This Article

GOLD	SILVER
COMEX GOLD FEBRUARY FUTURE -- $633.30	COMEX SILVER MARCH FUTURE -- $1402.00
EXPECTED TRADING RANGE
GOLD -- $627.80 -- $643.30	SILVER -- $1366 - $1435.00
COPPER AND CRUDE OIL -- EXPECTED TRADING RANGE
COPPER MARCH -- $307.60 - $317.50	NYMEX CRUDE OIL  DECEMBER - $59.90 - $63.60
A break out of the recent consolidation is in the offing. The Fed meeting is over and it did not surprise the markets. Event risks are now over. It’s back to the technical factors, the US dollar and crude oil prices for gold and silver. Interest rate sensitiveness has come once again into play for the US dollar as UK is expected to raise interest rates in the first quarter of 2007 after stronger than expected inflation. Lower trade deficit could not salvage the US dollar.   Gold and silver will continue to sing the greenback’s tune for the time being on lack of major market moving news. Annual growth in Chinese industrial output picked up in November to 14.9 percent from 14.7 percent in October as factories geared up to meet buoyant export and domestic demand. Chinese economy is not slowing down despite efforts made by Chinese authorities. Base metals will be supported by a stronger Chinese economy while gold and silver will rise.   Asian currencies are expected to appreciate significantly against the US dollar in 2007. Stronger Asian currency will somewhat offset the rise in gold and silver prices to a certain expect and should result in higher demand. If Chinese yuan appreciates significantly then it will affect Asian currencies positively. The movement of the US dollar will play a major role for gold and silver in the first quarter of 2007.
GOLD -- FEBRUARY FUTURE
Gold needs to hold $617.40 to prevent a slide to $603.20 On the higher unless there is a daily close over $643.70 the upside will be limited. Only a consolidated break of $643.70 will result in $655.80.
SILVER -- MARCH FUTURE
Silver needs to hold $1354 to prevent further losses to $1305 and $1234. On the higher there is a strong resistance between $1415 and $1435. A consolidated break of $1435 will result in $1490 as the next target.
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-- Posted Wednesday, 13 December 2006 | Digg This Article

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