-- Posted Monday, 12 February 2007 | Digg This Article

GOLD	SILVER
COMEX GOLD APRIL FUTURE -- $671.70	COMEX SILVER MARCH FUTURE -- $1390.0
EXPECTED TRADING RANGE
GOLD -- $663.00 -- $684.00	SILVER -- $1355.0 - $1434.00
COPPER AND CRUDE OIL -- EXPECTED TRADING RANGE
COPPER MARCH -- $249.70 - $262.00	NYMEX CRUDE OIL  FEBRUARY  - $58.20 - $62.30
GENERAL MARKET CONDITIONS
It’s more of cheap Japanese investment in commodities that is driving gold, silver as well as crude oil higher.  Japanese economy is not showing consistent growth. The bank of Japan will not raise interest rates and will also allow the yen to weaken further. Fund manager can easily borrow in yen at an interest rate below 3% and easily get a return of more than fifteen percent in commodities. This is what fund managers are resorting to.  Gold has broken the $660 and if it manages to hold $660 then there should be even greater short term hot money flowing into commodities.   Fundamentally as well as technically gold and silver are bullish, with the bulls dominating for most part of 2007. Gold and silver were delinked from the movement in foreign exchange markets on Friday. This delinking will continue over the next few weeks. Carry traders will continue to dictate the markets. The International Monetary Fund (IMF) could sell a limited amount of its gold reserves as part of a wider solution to its "flawed" income system, the IMF's Managing Director Rodrigo Rato told. But any sale should only be part of a wider solution to its revenue sources and should not disrupt the gold market, he said. Gold will not be affected by any news unless a clear proposal comes.
GOLD -- APRIL FUTURE
Gold targets $688.20 and $698.50 as long as it holds $659.80 on closing basis. Only a daily close below $65980 will result in $650.90 and $639.80.
SILVER -- MARCH FUTURE
Silver targets $1458 and $1534 as long as it holds $1329 on closing basis. Only a daily close below $1329 will result in $1252.
Happy Profitable Trading
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-- Posted Monday, 12 February 2007 | Digg This Article

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