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-- Posted Friday, 16 February 2007 | Digg This Article

GOLD	SILVER
COMEX GOLD APRIL FUTURE -- $673.00	COMEX SILVER MARCH FUTURE -- $1401.50
EXPECTED TRADING RANGE
GOLD -- $663.00 -- $682.00	SILVER -- $1374.0 - $1440.00
COPPER AND CRUDE OIL -- EXPECTED TRADING RANGE
COPPER MARCH -- $254.40 - $264.70	NYMEX CRUDE OIL  MARCH   - $57.20 - $60.20
MULTI COMMODITY EXCHANGE OF INDIA (MCX)
GOLD APRIL FUTURE/10 GRAMS	SILVER MARCH FUTURE/KG
Rs.9500 - Rs.9660	Rs.19,909 - Rs.20,765
NATURAL GAS MARCH FUTURE	CRUDE OIL MARCH FUTURE
Rs.314.00 - Rs.350.00	Rs.2,480 - Rs.2630
GENERAL MARKET CONDITIONS
Yesterday’s correction was a healthy correction for a sustained momentum in gold, silver and crude oil. If gold and silver rise continuously then there is every possibility of a slide as and when short term traders book profits. These corrections are just buying opportunities for the laggard medium term investor as well as long term investor.  The US Treasury International Capital flow report disappointed.  Foreigners were net sellers of US securities in the month of December. With a consensus forecast of $70 billion, the worst that traders probably expected were purchases between $40-50 billion.  Instead foreigners cut their net dollar holdings by $11 billion.  Excluding short term flows, net long term flows increased by $15 billion, but that was the weakest since January 2002 and pales in comparison to the market’s $60 billion forecast.  Caribbean-based investors, which are basically hedge funds, sold $15.1 billion while private investors boosted their foreign bond holdings by the largest amount ever.  China, Japan and OPEC nations were all buyers. Investors do not want to buy US bonds. Central bank will remain invested in US bonds as they will not like to destabilize the global balance all of a sudden. If this phenomenon continues for a few more months in 2007, gold will zoom. We have been mentioning in the past that the prime reason for gold to rise is that the world is switching from a US dollar standard to a gold standard. This may not visible daily, but over a period of time the US dollars value against gold is eroding and will continue to erode over the next few years.   Base metals once again have started rising on renewed investment demand. Tin, Nickel, copper, zinc have slowly started paring their January losses. The value of Chile's copper exports soared 41.50% in January from the previous month, despite a sharp drop in world prices, and 56% from the same month last year. Exports of the metal were worth $3.041 billion in January from $2.148 billion in December and $1.947 billion in January 2006, the bank said. Chile is by far the world's top copper producer, accounting for around a third of global output. Copper sales abroad account for over half the country's total export revenue. New copper production should start from June 2007 and will increase into 2008. Global copper inventories could be under pressure for the next six to eight month. Copper prices should top out between July and September and thereafter higher supplies will result in lower prices, unless there are mine workers strikes (as in the past).
GOLD -- APRIL FUTURE
Gold needs to break $676 - $680 zone for $700, $730. On the lower side $659.80 is the key support.
SILVER -- MARCH FUTURE
Silver needs to break $1437 for $1458 and $1486. On the lower side $1374 and $1350 are the initial support levels with $1330 as the key support.
Happy Profitable Trading & a Great Weekend
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
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, 16 February 2007 | Digg This Article

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