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-- Posted Tuesday, 24 April 2007 | Digg This Article

EXPECTED TRADING RANGE
GOLD JUNE -- $683.50 -- $707.00	SILVER  JULY  -- $1387.0 - $1430.00
COPPER AND CRUDE OIL -- EXPECTED TRADING RANGE
COPPER JULY   -- $352.10.00 - $371.00	NYMEX CRUDE OIL  MAY    - $63.80 - $67.00
GENERAL MARKET CONDITIONS
Gold and silver traded in range for most part of the day, yesterday due to profit talking but edge higher towards close on short covering after bears ran out of steam. The US dollar gained and US equity markets fell on profit taking on lack of major market moving news. From  today, till the close of the week there are slew of major economic numbers from US and Eurozone which could test the euro and sterling strength. The result of the French presidential elections could also affect the euro in the short term. Any unwinding of carry trade will result in correction in gold, silver and copper prices.   Comex Copper May future had a dream run on Chinese demand. In our view bullus will ensure that copper May future closes higher and that July future could close lower from May future close as some of the short positions are getting converted in long positions on dips. A major reversal in market sentiment. According to our information in Multi Commodity Exchange (MCX), there are more short positions which are yet to be rolled over. As such the spread between MCX copper April future and MCX copper June future could widen further.   Silver is starting to catch up gold and copper as it ties to edge higher. If silver holds on to the current levels, it will be able to generate substantial investment demand. Last year around this time, silver fell after the launch of the silver exchange traded fund. This year platinum has overtaken silver on speculation that an exchange traded fund on platinum will be launched soon. Once platinum falls, silver could gain as silver investors have diversified into platinum.
GOLD -- JUNE FUTURE
Gold needs to break $697 - $701.10 for $707 and $715. On the lower side $690.50 is the initial support with $683.60 as the key support.
COPPER -- JULY  FUTURE
Copper needs to break $371.50 for $377.80 and $384.20. On the lower as side as long as $352.10 holds on closing basis, downside limited. A consolidated fall below $352.10 will result in $333.10
Happy Profitable Trading
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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, 24 April 2007 | Digg This Article

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