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-- Posted Monday, 5 February 2007 | Digg This Article

GOLD	SILVER
COMEX GOLD APRIL FUTURE -- $653.70	COMEX SILVER MARCH FUTURE -- $1348.50
EXPECTED TRADING RANGE
GOLD -- $642.00 -- $665.00	SILVER -- $1300.0 - $1390.00
COPPER AND CRUDE OIL -- EXPECTED TRADING RANGE
COPPER MARCH -- $235.00 - $256.00	NYMEX CRUDE OIL  FEBRUARY  - $57.65 - $61.80
MULTI COMMODITY EXCHANGE OF INDIA (MCX)
GOLD APRIL FUTURE/10 GRAMS	SILVER MARCH FUTURE/KG
Rs.9280 - Rs.9480	Rs.19,300 - Rs.20,160
NATURAL GAS FEBRUARY FUTURE	CRUDE OIL FEBRUARY FUTURE
Rs.314.00 - Rs.360.00	Rs.2,570 - Rs.2670
GENERAL MARKET CONDITIONS
Base metals got busted after Red Kite's $1 billion fund lost 20% in the past one year. Base metals have lost as much as 27% this year on rising global inventories and slowing global growth. This is one of the reasons why we keep on emphasizing the need for investing in gold and silver. Stock can crash like a pack of cards, bonds yields can nosedive, other derivative instruments can go haywire but not gold and silver. Cheap money created by various central banks to stimulate growth will only result in some financial instruments falling into the bear grip. When the law of gravity acts, the technical factors as well as fundamental factors are out of the picture.   Gold and silver will not get affected by the cheap money flowing into them. There will be wild swings in gold and silver which will not alter the long term bullish trend. Stocks markets have been rising for the past six months, bonds yields are firm. What happens to gold and silver when global equities have a sustained fall. Gold and silver will also fall when global stock markets fall due to liquidity factors, but the percentage fall in gold and silver will be less than the percentage fall in stocks and gold and silver will recover faster than any other financial instrument.   Over leverage in any financial instrument is like hitting the axe on your own leg. Investors need to have a balanced portfolio which gives them a decent return. Gold has risen over $15% from the $602 low in 2007 which is a great return. There is no limit to ones greed. When greed takes over an investor he will be either a king or a pauper and in most cases a pauper. One needs to overcome greed and act prudently while making investment decisions. Due to technology, markets switch their portfolio very quickly which increases volatility. The use of trailing stop losses and booking partial profits prevents returns from moving into negative territory.
GOLD -- APRIL FUTURE
Failure to gold to break $670 this week will result in losses to $642 and $620. A break of $670 will result in $690. In
SILVER -- MARCH FUTURE
Failure of silver to break $1400 this week result in losses to $1272 and $1240. Initial support is at $1312.
Happy Profitable Trading
Further MCX, NCDEX and Comex future Analysis can be obtained by registering to our
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learn about subscription details. Comments and questions are also invited via email to
chintan@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 Monday, 5 February 2007 | Digg This Article

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