-- Posted Tuesday, 20 March 2007 | Digg This Article

GOLD	SILVER
COMEX GOLD APRIL FUTURE -- $656.70	COMEX SILVER MAY FUTURE -- $1326.50
EXPECTED TRADING RANGE
GOLD -- $651.00 -- $666.00	SILVER -- $1300.0 - $1369.00
COPPER AND CRUDE OIL -- EXPECTED TRADING RANGE
COPPER MAY  -- $297.00.00 - $315.60	NYMEX CRUDE OIL  APRIL    - $5700 - $61.00
GENERAL MARKET CONDITIONS
Interest rate hike by China failed to dent the bullish trend of copper and other base metals. Until there is real evidence of Chinese economy slowing down, base metals will rise. Investors believe that future demand will exceed supplies.  Base metal prices are dependent on China and US. Demand from China will remain strong till Olympic games next year and thereafter fall. In the short term base metals will trade with a firm bias. Base metals rise will support silver more than gold.   Carry traders can once again gold and silver higher on expectations that the Fed will cut interest rates while the European Central Bank (ECB) and the Bank of England (BoE) will raise interest rates. The Fed is caught between the devil and the deep sea. The devil is inflation while the deep sea is interest rates. If the Fed raises interest rates, growth rates could fall further and US savings rates could move further into negative territory. If the Fed does not raise interest rates, then the ghost of inflation can haunt them. In our view the Fed will follow Bank of Japan and could delay raising of interest rates and also ensure that the US dollar remains weak so that exports rise and imports fall. Precious metals will benefit courtesy the Fed.
GOLD -- APRIL FUTURE
Gold needs to beak $663.70 for $676 and $692.00. On the lower side $650.10 is the key support.
SILVER -- MAY  FUTURE
Silver needs to break $1339 for $1370 and $1412. On the lower side as long as $1290 is the key intra day support.
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.

-- Posted Tuesday, 20 March 2007 | Digg This Article

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