Precious metals as well base metals were buoyed by US china trade disputes which could lead to protectionism between the two nations. China's trade surplus almost doubled in the first quarter, as the U.S. takes complaints to the World Trade Organization. The surplus widened to $46.4 billion from $23.3 billion a year earlier. However in the month of March, Chinese exports gained 6.90% to $83.4 billion and imports climbed 14.5% to $76.6 billion. If Chinese imports continue to rise over the next few months and exports fall then it will be sign of domestic demand led Chinese growth which could result in gold testing 1980’s high.
Copper for the first time in six weeks has consolidated for a day. There is profit taking at the current levels, once profit taking is over volatility will increase, copper could restart its next bullish journey. The first phase of copper gains is over. London Metal Exchange (LME) three month copper test and break $8000. Failure of LME three month copper to break $8000 in April will result in slide to $7000 once again. In the first 100 days of 2007 Comex copper has gained 22.64%. Nickel has gained 45.24% in the first 100 days of 2007. Most of the precious metals as well as base metals have given an average return of over 15% so far in 2007. There will be continued investment demand at lower levels in both precious metals as well as base metals for the rest of 2007. High volatility will not deter new investors to enter base metals. Global equity market is a paper market, which is like a black horse painted with rosy colours with the rosy colour fading in the summer heat. Metals are hard assets, still at a nascent stage to be classified as investment, but should give equity markets good competition.
GOLD -- JUNE FUTURE
Gold targets $692 and $700 as long as $673.60 holds on closing basis. A consolidated fall below $673.60 will result in $660 and $653.20.
SILVER -- MAYFUTURE
Silver targets $1412 and $1480 as long as $1340 holds on closing basis. A daily close below $1340 will result in $1305 and $1284 respectively.
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 employeeshave any liability
for any losses incurred in connection with any decision made, action or inaction taken by any
partyin 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
1080-81, Ugger Sen Street,”Somani Bhawan”
Sita Ram Bazar, New Delhi-110006. India.
Ph: [O] 91-11-30919880 [M] 09811139549
Website: www.insigniaindia.com
Email: chintan@insigniaindia.com
The content on this site is protected
by U.S. and international copyright laws and is the property of GoldSeek.com
and/or the providers of the content under license. By "content" we mean any
information, mode of expression, or other materials and services found on GoldSeek.com.
This includes editorials, news, our writings, graphics, and any and all other
features found on the site. Please contact
us for any further information.
Disclaimer
The views contained here may not represent the views of GoldSeek.com, its affiliates or advertisers. GoldSeek.com makes no representation, warranty or guarantee as to the accuracy
or completeness of the information (including news, editorials, prices, statistics,
analyses and the like) provided through its service. Any copying, reproduction
and/or redistribution of any of the documents, data, content or materials contained
on or within this website, without the express written consent of GoldSeek.com,
is strictly prohibited. In no event shall GoldSeek.com or its affiliates be
liable to any person for any decision made or action taken in reliance upon
the information provided herein.
OilSeek.com
