-- Posted Tuesday, 26 December 2006 | Digg This Article

GOLD	SILVER
COMEX GOLD FEBRUARY FUTURE -- $626.70	COMEX SILVER MARCH FUTURE -- $1286.50
EXPECTED TRADING RANGE
GOLD -- $620.40 -- $637.40	SILVER -- $1248 - $1350.00
COPPER AND CRUDE OIL -- EXPECTED TRADING RANGE
COPPER MARCH -- $278.00 - $300.80	NYMEX CRUDE OIL  DECEMBER - $61.15 - $65.10
GENERAL MARKET CONDITIONS
Iranian nuclear issue will be in the headlines for the next few months after UN Security council imposed sanctions. Gold, crude oil and silver will be supported Iranian news at lower levels. The resolution demands Iran end all research on uranium enrichment, which can produce fuel for nuclear power plants as well as for bombs, and halt all research and development on methods of producing or delivering atomic weapons. The thrust of the sanctions is a ban on imports and exports of dangerous materials and technology relating to uranium enrichment, reprocessing and heavy-water reactors, as well as ballistic missile delivery systems.  The measure is less restrictive than the original draft, drawn up by Britain, France and Germany, due to Russian objections. A ban on Iran's oil exports was not considered. This is another gimmick by crude oil producing nations including Russia to ensure that crude oil prices remain firm and not get bogged by lower 2007 global growth forecast. However any news of use of military force on Iran in the first quarter of 2007 could easily result in gold rising to $680-$700.   There could be some profit taking which should provide investing opportunity. The war of words between Iran and rest of world has started once again but this time markets will not repeat the mistake of July 2006 and not be affected in big way unless something solid emerges. Since the key long term technical supports have been held the short term bullish trend will remain intact as we move into 2007.
GOLD -- FEBRUARY FUTURE
Gold needs to break $637.60 for $643.40 else it will trade in $621 - $637 range for the rest of the week. Only a daily close below $615.80 will result in further losses else the downside is limited.
SILVER -- MARCH FUTURE
Silver needs to break $1308 for $1339 and $1400. On the lower side supports are at $1252 and $1224.
Happy Profitable Trading
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-- Posted Tuesday, 26 December 2006 | Digg This Article

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