-- Posted Thursday, 8 February 2007 | Digg This Article

GOLD	SILVER
COMEX GOLD APRIL FUTURE -- $657.20	COMEX SILVER MARCH FUTURE -- $1368.0
EXPECTED TRADING RANGE
GOLD -- $649.00 -- $667.00	SILVER -- $1330.0 - $1400.00
COPPER AND CRUDE OIL -- EXPECTED TRADING RANGE
COPPER MARCH -- $240.00 - $254.00	NYMEX CRUDE OIL  FEBRUARY  - $56.20 - $60.30
GENERAL MARKET CONDITIONS
The next two days are very crucial for gold, silver, crude oil as well as the US dollar. They are all on the verge of a break out. Crude oil fell after repeated failures to edge past $60.00 a barrel. Event risk has result in profit taking. We have European Central Bank (ECB) meeting as well as the Bank of England (BoE) meeting today. Then there is a G7 meeting over the weekend where yen’s weakness could be the focus. ECB’ s comments on interest rates will determine the future direction of the Euro and with crude oil prices on the rise, they will raise interest rates sooner than later. Bank of England surprised the markets by raising interest rates last month. Although they are not expected to raise interest rates today, but the strength of UK economy suggests that could be further interest rate hikes. The G7 meeting should be an all hype damn squib case.   The develop nations are unable to digest the progress of developing nations such as India, China as they resort of manipulation in foreign exchange markets to reduced the growth rates of developing nations. Eurozone is crying foul with Japan over the weakness in euro/yen and wants Japan to raise interest rates or take measures to prevent further weakness in yen. US and developing nations want China to make the yuan fully convertible. The developed nations wanted the emerging markets and the developing nations to open up their economies. When these economies opened up they was a flutter among them as it resulted in job losses in their countries. The World Trade Organisation (WTO) talks has been stalled as India, China and other developing nations want there equal footing over trade barriers and farm subsidy. In future the G7 or the developed nations will not be able to dictate the world. These are just early warning signals of the things to come due to re-adjustment in the foreign exchange markets. There could be a slight possibility of move towards protectionism. Gold and silver will attract greater investment demand as investors do not like uncertainties.    It is the calm before the storm for gold and silver. A break of $660 - $670 for spot gold will result in a move to $730 and $856 over the coming months . While a failure to break $660-$670 will result in retest of $636 and $620 next week. Silver needs to break $1437 for $1525 and $1650. Failure of spot silver to break $1400 -$1437 will result in losses to $1300 and $1248.
COMEX GOLD -- APRIL FUTURE
Gold needs to break $665-$670 zone for $693. On the lower side there is an initial support at $654.50 and further at $650.20 with $647 as the key intra day support. A consolidated fall below $647 will result in $641.
COMEX SILVER -- MARCH FUTURE
Silver needs to close over $1392 for further gains to $1437. On the lower side $1350 is the initial support with $1330 and $1300 as the key support levels.
Happy Profitable Trading
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-- Posted Thursday, 8 February 2007 | Digg This Article

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