Copper Zinc and other base metals are consolidating at the moment before the next move. Markets expect the Chinese economy to grow at over 10% in the first quarter of 2007 which is supporting base metals prices. Gold and silver are also finding investors at lower levels. US dollar is not getting support from any positive news as carry trader continue to bang the US dollar down. US and European equity markets are rising on mergers and acquisition related news. Merger and acquisitions have picked up in a big way over the past one year and it seems that the global economy is heading towards to oligopoly. Over a period of in any segment there will be a few large companies which could form a cartel and dictate prices. This is one of the drawbacks of oligopolistic market place and then state could come into picture. As and when merger and acquisitions start to decline globally, equity markets will decline sharply.
In India gold physical demand has risen but not picked up as per market expectations ahead of the Akshay Tritiya. According to our information, demand in states of Maharashtra and Karnataka has been above expectations while Kerala and Tamil Nadu demand has been lackluster. In Delhi and parts of Northern India, physical demand for gold has been steady over the past one week. After Akshay Tritiya, Indian marriage season will be the only source of incremental demand (apart from exchange traded fund) and will till the end June.
GOLD -- JUNE FUTURE
Gold targets $700 and $730 as long as $677.30 holds on closing basis. A consolidated fall below $677.30 will result in $663.20 and $659.00
SILVER -- MAYFUTURE
Silver targets $1500, $1537 as long as $1372 holds on closing basis.
Happy Profitable Trading
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Prepared By Chintan Karnani. Web Site:www.insigniaindia.com
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