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-- Posted Friday, 13 April 2007 | Digg This Article

GOLD	SILVER
COMEX GOLD JUNE FUTURE -- $682.40	COMEX SILVER MAY FUTURE -- $1392.00
EXPECTED TRADING RANGE
GOLD JUNE -- $673.70 -- $688.00	SILVER  MAY -- $1360.0 - $1440.00
COPPER AND CRUDE OIL -- EXPECTED TRADING RANGE
COPPER MAY  -- $343.00.00 - $362.00	NYMEX CRUDE OIL  APRIL    - $62.80 - $66.00
GENERAL MARKET CONDITIONS
The US dollar is being banged by the bears against the Euro and the sterling as yen carry trades surge. The US dollar is being undermined on expectations that Eurozone and UK growth rates will overtake US growth rates in 2007 while other developed nations are catching up with US. Sterling is getting support from speculation that the UK Treasury is discussing proposals to allow UK firms to repatriate some of their international profits tax free.  This reminds us of the tax holiday offered by the US Homeland Investment Act back in 2004. If passed, it would be exceptionally bullish for the British pound.  However, it is only being discussed and has not been passed by the Treasury at the moment, so it could be some time before we actually see the flow. It’s all about yields and interest rate differentials at the moment and the calculations are simple, borrow in yen and invest the same in higher yielding investments. With rise in Japanese growth rates, Japanese investors are bound to invest in other markets for higher returns. The carry trade can result in euro nearing 1.4000 and sterling breaking 1.20 against the US dollar. Gold and silver will remain firm on the back of a weaker US dollar. However one still needs to book small profit on short US dollar trades with trailing stop losses for the rest because whenever there is profit taking euro and sterling could fall like pack of cards. It may not happen in April or May, but we expect the US dollar to gain sharply in June before the Fed meeting.   Copper fell on profit taking and is in a consolidation phase. Aluminum has been the worst performer in the base metals back. If China restricts Aluminum exports then Aluminum could soon catch up with copper. Aluminum is good investment for high risk takers on dips. Zinc has also underperformed copper but should be the best performer in 2007. Auto sector uses a alloy of copper and zinc which in India is called “Zamak”. The demand for “Zamak” by Indian, Chinese and other Asian auto and auto ancillary companies are on the rise. Higher global growth prospects for Auto sector will prevent zinc from a major fall in the short term to medium term.   There is greater physical demand at lower levels which will result gold and silver trading with a firm bias. The bullish is intact, but volatility will rise due to the G7 meeting over the weekend.
GOLD -- JUNE FUTURE
Gold needs to break $690 - $692 zone for $700. $673.60 is the initial support level with $663.60 as the key support.
SILVER -- MAY  FUTURE
Silver needs to break $1412 for further gains to $1460. On the lower side $1374 is the key intra day support and a fall below the same will result in $1354 and $1330.
Happy Profitable Trading & Have a Great Weekend.
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.
Prepared By Chintan Karnani. Web Site:www.insigniaindia.com

-- Posted Friday, 13 April 2007 | Digg This Article

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