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-- Posted Tuesday, 2 January 2007 | Digg This Article

Precious Metals Market Update for 2nd January, 2007
GOLD	SILVER
COMEX GOLD FEBRUARY FUTURE -- $639.70	COMEX SILVER MARCH FUTURE -- $1305.00
EXPECTED TRADING RANGE
GOLD -- $630.50 -- $654.20	SILVER -- $1272.0 - $1352.00
COPPER AND CRUDE OIL -- EXPECTED TRADING RANGE
COPPER MARCH -- $277.00 - $294.10	NYMEX CRUDE OIL  DECEMBER - $59.20 - $63.75
MULTI COMMODITY EXCHANGE OF INDIA (MCX)
GOLD FEBRUARY FUTURE/10 GRAMS	SILVER MARCH FUTURE/KG
Rs.9135 - Rs.9400	Rs.18,940 - Rs.20,300
NATURAL GAS JANUARY FUTURE	CRUDE OIL JANUARY FUTURE
Rs.262.00 - Rs.310.00	Rs.2,680 - Rs.2900
GENERAL MARKET CONDITIONS
2007 will be once again be dominated by the bulls as far as gold and silver are concerned. Volatility will only rise in 2007 and that the 2006 volatility was just the floating part of the glacier. Bulls and bears will slug it out. The prime reason for it is that interest rate expectations, geopolitical risk, the US dollar will also see heavy movement.   Geopolitical Risk: Under the US  president George W Bush’s regime the world had two rouge characters viz, Saddam Hussein and Osama Bin laden. Saddam Hussein is hanged. The aftermaths of the death of saddam Hussein will be very crucial for oil prices.  US troops continue to suffer losses every day and is seems that it will even worse than Vietnam. 2006 did witness and major terror attacks fears of terror threats will keep traders on the edge from going too short. The Iran nuclear issue has just been restarted with UN sanctions being imposed unless a peaceful solution is in sight there is every possibility of the use of force.   Interest Rate: Global interest rates have continuously risen over the past two years. In 2007 different central banks will act differently which will result in liquidity being volatile. The Fed should be liquidity provider while bank of Japan, ECB and Bank of England will shrink it.   US dollar: Overall market sentiment is bearish for the US dollar. The US dollar may weaken in the first quarter of 2007 and may thereafter gain. Interest rate differential will act as a negative for the US dollar. However the lagging effects of a strong Euro and sterling will result in growth stabilizing or lowering in the second quarter or the third quarter of 2007 which will support the greenback.
GOLD -- FEBRUARY FUTURE
Gold needs to break and hold $643.40 for $660. On the lower side $628.50 and $618.80 are the support levels.
SILVER -- MARCH FUTURE
Silver needs to break $1308 for $1352 and $1425. On the lower side supports are at $1272 and $1248.
Happy Profitable Trading
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errors in, or omissions of Information.

-- Posted Tuesday, 2 January 2007 | Digg This Article

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