-- Posted Friday, 19 January 2007 | Digg This Article

GOLD	SILVER
COMEX GOLD FEBRUARY FUTURE -- $628.80	COMEX SILVER MARCH FUTURE -- $1275.50
EXPECTED TRADING RANGE
GOLD -- $611.00 -- $637.10	SILVER -- $1225.0 - $1325.00
COPPER AND CRUDE OIL -- EXPECTED TRADING RANGE
COPPER MARCH -- $236.00 - $260.00	NYMEX CRUDE OIL  JANUARY  - $49.00 - $53.80
MULTI COMMODITY EXCHANGE OF INDIA (MCX) - SPREAD/BADLA
BUY GOLD APRIL, SELL GOLD FEBRUARY FOR RS.49 (PREVIOUS DAY CLOSE RS.155)
BUY SILVER MAY , SELL SILVER MARCH FOR RS.75 (PREVIOUS DAY CLOSE RS.419)
BUY CRUDE OIL MARCH , SELL CRUDE OIL FEB FOR RS.18 (PREVIOUS DAY CLOSE RS.49)
BUY COPPER APRIL, SELL COPPER FEBRUARY FOR RS.2 (PREVIOUS DAY CLOSE RS.5.05)
NATIONAL COMMODITIES AND DERIVATIVES EXCHANGE (NCDEX)
GOLD FEBRUARY FUTURE/10 GRAMS	SILVER FEBRUARY FUTURE/KG
Rs.8940- Rs.9,216	Rs.18,100- Rs.19,400
STEEL FEBRUARY FUTURE	CRUDE OIL FEBRUARY FUTURE
Rs.19652.00 - Rs.20075.00	Rs.2,210 - Rs.2380.00
GENERAL MARKET CONDITIONS
Gold and silver are caught between the US dollar and crude oil prices. The US dollars performance is mixed as it gains against the Euro and yen while it weakens against the sterling, suggesting the advent of carry trade. Gold and silver could have fallen even further but for the sterling carry trade. Equity markets are consolidating at the moment and all good news has been factored in. Any sustained fall in global equity markets will impact precious metals due liquidity factors. Copper, zinc and other base metals are finding sellers at higher levels as expected demand from China did not turn up and global inventories rise.   Federal Reserve Chairman Bernanke said the U.S. government may face a ``fiscal crisis'' in the coming decades should it fail to deal with the rising costs of Social Security, Medicare and Medicaid programs. The chairman refrained from endorsing any specific proposal to narrow the budget gap. Bernanke's appearance comes less than three weeks before President George W. Bush presents his proposal to balance the federal budget by 2012. Purchasing power of the US dollar will impact gold and silver prices in the short term to medium term. Traders have a tendency to react very swiftly to news and they discount them very quickly.  Long term US fiscal crisis (if any) will only support gold and silver.   Spot gold has to break $660-$670 to invite hot money else there will be sellers as and when near it. For the past five months gold has failed to break $660 and is trading in $570 - $660 zone. Once gold breaks and hold over $660 for a week, the rise will like a ride in a Ferrari car. There are apprehensions that the Indian exchange traded fund (ETF) will not be able to increase Indian gold demand significantly. The income of the Indian’s is rising at very rapid pace and they are looking for investment other than equities and real estate. The Indian gold ETF will not result in stashed gold invested in ETF.
GOLD -- FEBRUARY FUTURE
Gold needs to hold $619.80 on closing basis to prevent further losses to $611 and $602. On the higher side $631.80, $637.10 and $643.40 are the resistance levels.
SILVER -- MARCH FUTURE
Silver needs to hold $1202 to prevent a fall to $1109 ad $1019. On the higher side $1239 and $1252 are the initial resistance with $1325 as the key short term resistance.
Happy Profitable Trading & A Great weekend
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 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.

-- Posted Friday, 19 January 2007 | Digg This Article

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

Previous Articles by Chintan Karnani, Insignia Consultants

© 1995 - 2019

Live GoldSeek Visitor Map | Disclaimer