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-- Posted Friday, 2 March 2007 | Digg This Article

GOLD	SILVER
COMEX GOLD APRIL FUTURE -- $661.40	COMEX SILVER MAY FUTURE -- $1372.00
EXPECTED TRADING RANGE
GOLD -- $647.00 -- $680.00	SILVER -- $1310.0 - $1412.00
COPPER AND CRUDE OIL -- EXPECTED TRADING RANGE
COPPER MAY  -- $269.20.00 - $285.60	NYMEX CRUDE OIL  MARCH   - $59.00 - $63.00
GENERAL MARKET CONDITIONS
Happy Holi to everybody. This has been a colourful week for commodity traders with the colour green and red change very frequently in their trading screens. Excess global liquidity has its merits as well as risks. The past two weeks volatility in gold and silver will result in low risk traders not investing in gold and silver. Globally average cost of funds is very less when compared to the same fifteen years ago. There has been position squaring by everybody which resulted this weeks carnage. Only when there is excess global liquidity that equity markets, bonds and the commodity markets rise simultaneously. And a fall or change in investor sentiment in either of these markets will affect other markets too. Commodities are relatively new investment class and investors are nervous whenever there is a fall which results in total mayhem. Fundamental factors do not change overnight. Technical factors can change overnight as they are based on past prices.   Yen gains, against most of the currencies was partly the reason for the fall. Iranian risk premium is being reflected in the current price. During the Israel – Hezbollah clashes in July, 2006, markets expected gold to rise to $700 whereas gold fell to $570. Investors will not get swayed buy changes in geopolitical risk unless there is a war. They have been bruised in the past and they will not like the same to happen to then once again.   The long term technical support levels for gold and silver have been held however the short term technical do portray a bearish divergence unless gold and silver close higher today.  Volatility in gold can happen anytime. Traders need to stay in the markets till the close. A client was long in MCX gold April at INR 9730 during this week. After he was long, the same day at night, MCX gold April reached a high of INR 9865. The client did not square off as was not aware of the prices. The next day he closed the trade at INR 9700 to incur a loss of INR 40. Traders have to be aware of the prices till the markets close as volatility is high and will continue for the rest March.
GOLD -- APRIL FUTURE
Gold needs to close over $659.90 today to be in short term bullish trend, else expect a fall to $639 and $627 next week. Resistance is capped at $672 and $680
SILVER -- MARCH FUTURE
Silver has to close over $1358 today to be in a short term bullish direction, else expect a fall to $1310 and $1290 next week. Resistance is capped at $1396, $1412 and $1450.
Happy Profitable Trading
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.
Prepared By Chintan Karnani. Web Site:www.insigniaindia.com

-- Posted Friday, 2 March 2007 | Digg This Article

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