-- Posted Tuesday, 16 January 2007 | Digg This Article

GOLD	SILVER
COMEX GOLD FEBRUARY FUTURE -- $626.40	COMEX SILVER MARCH FUTURE -- $1293.00
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
MULTI COMMODITY EXCHANGE OF INDIA (MCX) - SPREAD/BADLA
BUY GOLD APRIL, SELL GOLD FEBRUARY FOR RS.49 (PREVIOUS DAY CLOSE RS.159)
BUY SILVER MAY , SELL SILVER MARCH FOR RS.75 (PREVIOUS DAY CLOSE RS.401)
BUY CRUDE OIL MARCH , SELL CRUDE OIL FEB FOR RS.18 (PREVIOUS DAY CLOSE RS.50)
BUY COPPER APRIL, SELL COPPER FEBRUARY FOR RS.2 (PREVIOUS DAY CLOSE RS.4.30)
NATIONAL COMMODITIES AND DERIVATIVES EXCHANGE (NCDEX)
GOLD FEBRUARY FUTURE/10 GRAMS	SILVER FEBRUARY FUTURE/KG
Rs.8920- Rs.9,260	Rs.18,800- Rs.19,700
STEEL FEBRUARY FUTURE	CRUDE OIL FEBRUARY FUTURE
Rs.19800.00 - Rs.20125.00	Rs.2,330 - Rs.2470.00
GENERAL MARKET CONDITIONS
China cast its shadow in base metals in 2006 and they zoomed. In 2007 china effect will be witnessed in gold and silver. Chinese citizens have been taking to gold as a significant investment option according to reported figures from the Shanghai Gold Exchange.  Chinese gold production is also rising with estimates that 2006 output will have reached 230-240 tonnes. China is currently the world’s fourth largest gold producer after South Africa, the U. S. and Australia. China will be the world’s largest producer in ten years’ time as existing gold mines in the established gold mining countries become depleted moving the focus of production to new areas. Chinese gold consumption could double in the next four to five years.   China's foreign exchange reserves, the largest in the world, jumped $247.3 billion in 2006 to reach $1.06634 trillion at the end of December. China will make it a priority to cut its large, politically sensitive trade surplus in 2007.  China's trade surplus in 2006 reached a record $177.5 billion, jumping from $102 billion in 2005. Any hints of reserve diversification by china will result in the US dollar taking a thrash and gold and silver rising. A stronger yuan will also increase Chinese gold consumption.   There is a difference between investments and trading. Traders as well as investors are advised to use trailing stop losses on their investments as both of them panic if the value of their investments decreases by more than fifteen percent.  Traders and investors do not panic if equity markets plunge, but gold and silver relatively being a new investment avenue investors do worry. In 2006 gold and silver underperformed on annualized returns. However in 2007 gold and silver should beat the average returns from equity markets (exclude India and other emerging markets equities).
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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-- Posted Tuesday, 16 January 2007 | Digg This Article

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