-- Posted Tuesday, 19 December 2006 | Digg This Article

INSIGNIA CONSULTANTS
Precious Metals Market Update for 19th December, 2006
GOLD	SILVER
COMEX GOLD FEBRUARY FUTURE -- $620.0	COMEX SILVER MARCH FUTURE -- $1271.50
EXPECTED TRADING RANGE
GOLD -- $614.40 -- $634.10	SILVER -- $1229 - $1356.00
COPPER AND CRUDE OIL -- EXPECTED TRADING RANGE
COPPER MARCH -- $298.60 - $313.80	NYMEX CRUDE OIL  DECEMBER - $59.90 - $63.60
MULTI COMMODITY EXCHANGE OF INDIA (MCX)
GOLD FEBRUARY FUTURE/10 GRAMS	SILVER MARCH FUTURE/KG
Rs.8980 - Rs.9209	Rs.18,475 - Rs.19,765
COPPER FEBRUARY FUTURE	CRUDE OIL JANUARY FUTURE
Rs.296.00 - Rs.310.00	Rs.2,802 - Rs.2880
GENERAL MARKET CONDITIONS
Silver is lived upto its reputation as it fell for the second continuous day buy still closed over its key long term support of $1252 to ensure that the short term bullish trend is intact while gold managed to hold the 200 day MA. These are all buying opportunities for the long term investor. In 2006 there have been several times when gold and silver have tested the 100 day and the 200 day moving average and as long as they have held on closing basis they have managed to rise.. This will continue to apply for gold and silver for the balance of 2006. Traders and investors are still nervous whether profit taking will continue for a third day which is preventing a spike.   In MCX margin pressures was seen from brokers and some may them may have squared off some of their client’s long positions to meet margin requirement of the exchange. In India investors are still invested in gold and silver at higher levels and margin pressures will be evident even today unless silver rises. The net impact will be if silver prices fall in comex future MCX silver future will fall more than normal. Gold just had a technical correction.   The key short term technical levels in both gold and silver have held well and should hold for the remaining few sessions in 2006. The US dollar and crude oil prices will impact gold and silver this week too. The fear of hedge fund liquidation should be over soon and that will every fall the risk to return ratio will be in favour of the buyer.
GOLD -- FEBRUARY FUTURE
Gold needs to hold $615.80 on closing basis to prevent a slide to $603.20 On the higher unless there is a daily close over $637.40 the upside will be limited. Only a consolidated break of $637.40 will result in $643.80.
SILVER -- MARCH FUTURE
Silver has a strong support at $1252 and as long it holds on closing basis there every possibility of $1437. Only a consolidated fall below $1252 will result in $1229 and $1188.
Happy Profitable Trading
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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 Tuesday, 19 December 2006 | Digg This Article

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