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-- Posted Monday, 15 January 2007 | Digg This Article

GOLD	SILVER
COMEX GOLD FEBRUARY FUTURE -- $626.30	COMEX SILVER MARCH FUTURE -- $1296.00
EXPECTED TRADING RANGE
GOLD -- $620.10 -- $645.50	SILVER -- $1252.0 - $1350.00
COPPER AND CRUDE OIL -- EXPECTED TRADING RANGE
COPPER MARCH -- $254.00 - $272.10	NYMEX CRUDE OIL  JANUARY  - $52.00 - $56.00
GENERAL MARKET CONDITIONS
It has been a great start to 2007! And the start has given signals of the year ahead.  Metals have been very volatile with gold and silver paring most of the early losses. Crude oil at below $55 a barrel was unthinkable a few months ago. The fall in crude oil prices will alter every market. Market had factored in lower global growth in 2007 due to higher crude oil prices. However lower crude oil prices have changed everything. Global growth should remain strong atleast till the third quarter.  Do not be surprised if the Fed raises interest rates in May, instead oil cutting. Bank of England has surprised last week, the Fed can also surprise the market.   There are a lot of concerns whether gold and silver will continue to rise in 2007 or it may fall and the percentage of one’s investment in gold and silver.  US president George W Bush completes six years in office this month. Under the leadership of Mr. Bush the Americans have followed the policy of “Might Is Right.”  There has been a 9/11, Iraq has been captured by USA and a puppet government put in place where the heads keep on changing.  Somalia has been attacked on pretext of curbing Islamic terrorism.  Iran, North Korea and other nations are on the radar of Mr. Bush.  The world still has two more years of Mr. Bush to tide with.  Only time will tell what will happen to anti US nations in these two years.  UK wants to ensure that its troops are all over the word. China has said it would like slowly like to  copy US. Each and every country is increasing it defense expenditure when the same money could be used for other productive purpose.  Why are nations continuously increasing their armed forces? The world may be headed towards a war over the coming years. It will not happen immediately but could happen in the next ten to twelve years.  Gold or nay other currency will sooner than later replace the US dollar as the world’s medium to trade and exchange.  The US economy has not performed well under Mr. Bush with rising trade deficit. US treasury bonds could be junk over the coming years.  I am not a critic of Mr. Bush. All I am trying to asses the impact on gold and the US dollar under Mr.Bush.  There is a difference between short term investments and long term investments. All I can say is that the value of gold will never be zero.We continue to recommend a minimum ten percent investment  in gold, silver and precious metals, whether by way future mark, physical or ETF. However the time of entry will depend on market circumstances and technical factors.
GOLD -- FEBRUARY FUTURE
Gold is once again in familiar $620 - $650 zone. Resistance at $643.60 and support is at $619.10 and $611.60.
SILVER -- MARCH FUTURE
Silver needs to break $1325 for $1400. On the lower side $1252 and $1224 are the support levels.
Happy Profitable Trading
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errors in, or omissions of Information.

-- Posted Monday, 15 January 2007 | Digg This Article

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