Commodities were hammered yesterday on profit taking and a combination of a stronger US dollar and a weaker crude oil. Gold and silver fell. Copper tumbled 7% to a near nine-month low on higher global inventories while oil slid 4% as mild weather in the U.S. Northeast kept a lid on demand for heating oil. We had mentioned at the beginning of the week that there will be tug-o-war between bulls and bears in 2007 which will result in higher intra day volatility and yesterday was just an example of the same.
Yesterday there was a technical correction in gold and silver and nothing else which could continue today. Depending on other factors these dips should be used as an opportunity for investment.There is physical demand for gold and silver between $615-$625 and $12.40-$12.50 which will prevent a major fall below these levels in the short term. A fall close below these levels will also result in a technical knockout. Markets will continue to be influenced by the US dollar and crude oil prices.
GOLD -- FEBRUARY FUTURE
Gold needs to break $649.10 else it will trade in wider $614.40 - $649.10 range. As long as $614.40 holds on closing basis the downside is limited.
SILVER -- MARCH FUTURE
Silver needs break $1339 else it will trade in $1239 - $1339 wider range. As long as $1339 holds on closing basis downside is limited. Closes below $1239 then $1202 and $1186 are the targets.
Happy Profitable Trading
For SMS and Yahoo support please mail at sms@insigniaindia.com
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 employeeshave any liability
for any losses incurred in connection with any decision made, action or inaction taken by any
partyin reliance upon the information provided in this material; or in any delays, inaccuracies,
1080-81, Ugger Sen Street,”Somani Bhawan”
Sita Ram Bazar, New Delhi-110006. India.
Ph: [O] 91-11-30919880 [M] 09811139549
Website: www.insigniaindia.com
Email: chintan@insigniaindia.com
The content on this site is protected
by U.S. and international copyright laws and is the property of GoldSeek.com
and/or the providers of the content under license. By "content" we mean any
information, mode of expression, or other materials and services found on GoldSeek.com.
This includes editorials, news, our writings, graphics, and any and all other
features found on the site. Please contact
us for any further information.
Disclaimer
The views contained here may not represent the views of GoldSeek.com, its affiliates or advertisers. GoldSeek.com makes no representation, warranty or guarantee as to the accuracy
or completeness of the information (including news, editorials, prices, statistics,
analyses and the like) provided through its service. Any copying, reproduction
and/or redistribution of any of the documents, data, content or materials contained
on or within this website, without the express written consent of GoldSeek.com,
is strictly prohibited. In no event shall GoldSeek.com or its affiliates be
liable to any person for any decision made or action taken in reliance upon
the information provided herein.
OilSeek.com
