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-- Posted Thursday, 10 May 2007 | Digg This Article

GOLD	SILVER
COMEX GOLD JUNE FUTURE -- $682.10	COMEX SILVER JULY FUTURE -- $1347.00
EXPECTED TRADING RANGE
GOLD JUNE -- $675.00 -- $694.00	SILVER  JULY  -- $1320.0 - $1387.00
COPPER AND CRUDE OIL -- EXPECTED TRADING RANGE
COPPER JULY   -- $354.10.00 - $380.00	NYMEX CRUDE OIL  JUNE    - $60.00 - $63.40
NATIONAL COMMODITIES AND DERIVATIVES EXCHANGE (NCDEX)
GOLD JUNE: As long as 9090 holds downside limited. Only a consolidated fall below 9090 will result in 8928. On the higher side a break of 9275 will result in 9332 and 9390.   SILVER JUNE: As long as 18332 holds downside limited. Only a consolidated fall below 18332 will result in 18040. On the higher side a break of 18760 will result in 18940 and 19140.
GENERAL MARKET CONDITIONS
One down two more to go today after the Fed meeting as markets wait for the uncertainty of the Bank of England meeting and the European central bank to be over. The stance of the Fed on interest rates has surprised and that if upcoming US economy statistics show higher growth instead and inflation, interest rates could well be raised instead of being cut. Bank of England (BOE) meeting will have a greater impact on commodity markets than the Fed or the ECB meeting. BOE has the uncanny habit of surprising the markets on interest rates. Markets have factored in 0.25% interest rate today by the BOE. However if the BOE bucks the markets and does not raise interest rates then sterling could fall which will negatively affect gold and silver prices. In BOE raises rates by 0.50% comex gold June should near $700 today. These are the likely outcomes of the BOE meeting on gold.   It’s back to square to one for gold and silver. They are finding buyers at lower levels. Spot gold $700 is proving to be a tough nut to crack. A combination of crude oil prices, carry trades and base metals will dictate prices. Silver’s volatility will increase for the remainder of the week as it is a precious metals as well as base metal. Physical gold demand from India will fall in the second half of next week due to the inauspicious Hindu month from 16th May. Marriages and important events are not done during this period by those who believe in it. However one should expect greater investment demand from India at lower levels. Indian gold prices have been subdued due to near eight percent gains in the Indian rupee over the last two months. If the rupee weakens, Indian gold prices will rise even if gold falls in US dollar terms. For the Indian investors the current gold prices provides an excellent short term as well medium term investing opportunity. If Indian real estate prices see further correction over the next two to three months then precious metals will be the biggest beneficiary of the same.
GOLD -- JUNE FUTURE
Gold needs to close over $675 today to prevent a fall to $671.20 and $663.60. On the higher side $689.80 is the initial resistance with $697.50 as the key resistances.
SILVER -- JULY  FUTURE
Silver needs to hold $1312 to prevent a fall to $1296 and $1282. On the higher side $1365 - $1373 is proving to be a tough nut to crack. A consolidated rise over $1373 with result in $1404 and $1430.
Happy Profitable Trading
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-- Posted Thursday, 10 May 2007 | Digg This Article

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