-- Posted Wednesday, 21 March 2007 | Digg This Article

GOLD	SILVER
COMEX GOLD APRIL FUTURE -- $660.30	COMEX SILVER MAY FUTURE -- $1339.50
EXPECTED TRADING RANGE
GOLD -- $653.70 -- $666.00	SILVER -- $1312.0 - $1369.00
COPPER AND CRUDE OIL -- EXPECTED TRADING RANGE
COPPER MAY  -- $293.00.00 - $310.10	NYMEX CRUDE OIL  APRIL    - $58.20 - $60.60
GENERAL MARKET CONDITIONS
China’s central bank chief has stated that that China would stop stockpiling foreign exchange reserves. There is nothing new in these comments as most central banks are diversifying foreign exchange reserves at a snails pace. Investing of foreign exchange reserves into US treasuries is the big question as US has a huge current account deficit. However gold and silver will rise as a result of these news.    Many major rivers in the world are at risk of drying out because of climate change and dam construction, which could affect fresh water supplies and marine life, the global nature protection body WWF said yesterday. In a report ahead of the March 22 'World Water Day', the Swiss-based group identified 10 rivers, including the Nile, the Rio Grande and the Danube, as some of the worst victims of poor planning and inadequate protection. Rivers regularly no longer reach the sea, like the Indus in Pakistan, the Nile in Africa and the Rio Grande ... There are millions of people whose livelihoods are at risk," said Jamie Pittock, director of WWF's global freshwater programme. Rivers are the world's main source of fresh water, and about half of the available supply is already being used up, he said. Dams have destroyed habitats and cut rivers off from their flood plains, while climate change could alter the rules by which rivers have lived by for thousands of years, the report said. Fish populations, the top source of protein and overall life support for hundreds of thousands of communities worldwide, are also being threatened, the report found.  If rivers dry up drought will spread at a rapid pace globally, which will add price pressure on agri – commodities. The Great Australian drought is due to global warming. In New Delhi, river Yamuna has more or less dried up and is like a big sewer in disguise with politicians make millions in the name of cleaning it. Rising population and side effects of man made global warming will result agri-commodity price inflation to rise over the coming years. Central banks may increase interest rates or put a higher limit on prices in an effort of check inflation.   It’s a just a consolidation phase for the precious metals ahead of the Fed meeting before the next leg higher. Technical supports have been holding well. If the Fed explicitly confirms that they will not raise interest rates in June, the US dollar could see major losses.
GOLD -- APRIL FUTURE
Gold needs to break $663.70 for $676 and $692.00. On the lower side $649.10 is the support.
SILVER -- MAY  FUTURE
Silver targets $1369 and $1412 as long as $1312 holds. A consolidated fall below $1312 will result in $1280.
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 Wednesday, 21 March 2007 | Digg This Article

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