-- Posted Wednesday, 10 January 2007 | Digg This Article

GOLD	SILVER
COMEX GOLD FEBRUARY FUTURE -- $614.00	COMEX SILVER MARCH FUTURE -- $1256.00
EXPECTED TRADING RANGE
GOLD -- $602.10 -- $628.50	SILVER -- $1170.0 - $1325.00
COPPER AND CRUDE OIL -- EXPECTED TRADING RANGE
COPPER MARCH -- $247.00 - $272.10	NYMEX CRUDE OIL  JANUARY  - $52.80 - $58.10
MULTI COMMODITY EXCHANGE OF INDIA (MCX) - SPREAD/BADLA
BUY GOLD APRIL, SELL GOLD FEBRUARY FOR RS.49 (PREVIOUS DAY CLOSE RS.179)
BUY SILVER MAY , SELL SILVER MARCH FOR RS.75 (PREVIOUS DAY CLOSE RS.423)
BUY CRUDE OIL JAN , SELL CRUDE OIL FEB FOR RS.20 (PREVIOUS DAY CLOSE RS.52)
BUY COPPER APRIL, SELL COPPER FEBRUARY FOR RS.2 (PREVIOUS DAY CLOSE RS.3.95)
NATIONAL COMMODITIES AND DERIVATIVES EXCHANGE (NCDEX)
GOLD FEBRUARY FUTURE/10 GRAMS	SILVER FEBRUARY FUTURE/KG
Rs.8780- Rs.9,120	Rs.18,100- Rs.19,300
STEEL FEBRUARY FUTURE	CRUDE OIL JANUARY FUTURE
Rs.19360.00 - Rs.19700.00	Rs.2,390 - Rs.2620.00
GENERAL MARKET CONDITIONS
Zinc took the beating yesterday as it fell nearly 3.50% while gold and silver are slowly and steadily edging higher. At lower levels demand from physical traders and investors is preventing gold and silver from falling. Precious metals are being dictated by the crude oil prices and the US dollar. However falling crude oil prices may just delink precious metals from the movement in the US dollar and oil prices. Investors and fund managers allocation of funds to gold and silver should rise and may reduce in crude oil and other energy products. Over the past seven months energies as well as precious metals have not even given a return of 15% however energies have been able to attract more money than precious metals. All this will change in 2007 and investors will be more cautious in investing in energies.   The recent fall in crude oil prices is an example of the speculative price escalation. Every commodity or a financial instrument has a speculative price attached to it. Whenever prices reach beyond justified levels prices fall sharply. Over the past one year it has happened with natural gas, gold, silver, copper and now crude oil. The price reason for the same is liquidity caused due to ultra low interest rates and benign inflation environment.  Nearly eight percent of the commodity market is future trading and the balance twenty percent is the physical market. Future trading is paper market. Paper trading can take prices to any levels. Investors should have the patience and be choosy in the commodity they are investing. For the rest of 2007 one should not expect that since gold is rising, silver and other precious metals and base metals will also rise. Every metal will be delinked from each other as investor portfolio churning will be swift and quick.   In MCX there are huge long positions in copper, zinc and crude oil apart from gold and silver. Retail investors will be using the rise in base metals to exit their long positions. As far as gold and silver are concerned, there is greater short term investment demand.
GOLD -- FEBRUARY FUTURE
Gold needs to break $619.10 for $624.80 and $635.10. On the lower side a consolidated fall below $600 will result in further losses to $594.50 and $570.0
SILVER -- MARCH FUTURE
Silver needs to hold $1239 and $1202 to once again target $1300 and $1400. A consolidated fall below $1202 will result in further losses to $1109 and $1019.
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.
Prepared By Chintan Karnani. Web Site:www.insigniaindia.com

-- Posted Wednesday, 10 January 2007 | Digg This Article

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