-- Posted Tuesday, 3 April 2007 | Digg This Article

GOLD	SILVER
COMEX GOLD JUNE FUTURE -- $669.70	COMEX SILVER MAY FUTURE -- $1333.50
EXPECTED TRADING RANGE
GOLD JUNE -- $662.70 -- $677.00	SILVER  MAY -- $1310.0 - $1370.00
COPPER AND CRUDE OIL -- EXPECTED TRADING RANGE
COPPER MAY  -- $307.00.00 - $325.00	NYMEX CRUDE OIL  APRIL    - $65.00 - $67.00
GENERAL MARKET CONDITIONS
Yesterday’s volatility in commodity markets was just a trailer of the things to come in the second quarter. Gold, silver and crude oil fell in Asian, European session and early US session only to pare off all the intra days losses to close flat. Gold futures fell 0.07% while silver futures fell 0.51%. In a falling market, silver will always fall greater than gold while in a rising market, silver will rise faster than gold. Copper was continued to rise on the back of higher global demand. Carry trades should pick up faster which will support gold and silver. Even if the Fed, the ECB and BOE raise interest rates by a quarter of a percentage carry trades will flourish.   Investors are now positioning themselves for the rest of the year. The US dollar is weaker and markets sentiment for the greenback is negative. Crude oil is expected to remain firm and could break $80 a barrel. There are forecast that this year there will be more hurricanes in the Gulf Mexico. In 2006, crude oil fell from $76 a barrel on expectations of hurricanes which did not arrive. Only time will tell of the number of hurricanes that will hit this year. Markets sentiment for the crude oil is bullish. Equity markets are rising, but it remains to be seen how long they will rise. The first quarter number of the companies should beat street expectations on warmer weather in northern hemisphere and lower crude oil prices. The second quarter results could be a dampener. Negative for stocks, positive for commodities. The bullish factors in gold and silver are outstripping the bearish factors, but markets will be liquidity driven.
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 -- MAY  FUTURE
Silver needs to break $1360 and $1369 for further gains to $1397. On the lower side only a daily close below $1320 will result in further losses to $1270.
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, 3 April 2007 | Digg This Article

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