A memorable first quarter comes to an end. Gold, silver, copper as well as crude oil have performed exceedingly well and have given above average return. Crude oil has been on a one way upward run on escalating tensions between Iran and UK. This bull run will continue into the next quarter. In the first quarter crude oil prices fell to a low of $50 a barrel on warmer winters in US and other parts ofNorthern hemisphere and rising US inventories and distillates . Subsequently crude oil prices and greater demand and resumption of Iranian risk. Copper near dated comex future fell below $250.00 as expected Chinese demand did come up only to rise after statistics showed a significant increase in Chinese Imports in February. Nickel, tin, steel and other base metals reached historical highs on dwindling global inventories and continued rise in demand. Gold, silver were the best performers considering the risk involved. However I must admit, I am a bit disappointed by silver’s first quarter performance. The US dollar fell over housing and mortgage related news which has the potential of dragging the US economy into recession. Global equity markets have given a double digit return in the first quarter of 2007. This was a bit of wrap up of the first quarter of 2007. However the only common factor in all the investment avenues was that volatility in the first quarter of 2007 was greater than 2006 average.
It’s more of a technical market for the time being. The good thing is that the key short term as well as medium term supports have been holding well, suggesting further gains as we move into the second quarter.
GOLD -- JUNE FUTURE
Gold needs to break and close over $677.00 for further gains to $692.60. On the lower side $665.70 is the initial support with $661.10 and $653.80 as the key support.
SILVER -- MAYFUTURE
Silver needs to break $1360 and $1369 for further gains to $1397. On the lower side only a daily close below $1312 will result in further losses to $1270.
Happy Profitable Trading & a Great Weekend.
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