-- Posted Monday, 14 May 2007 | Digg This Article

GOLD	SILVER
COMEX GOLD JUNE FUTURE -- $673.30	COMEX SILVER JULY FUTURE -- $1328.00
EXPECTED TRADING RANGE
GOLD JUNE -- $669.00 -- $680.50	SILVER  JULY  -- $1300.0 - $1354.00
COPPER AND CRUDE OIL -- EXPECTED TRADING RANGE
COPPER JULY   -- $349.10.00 - $370.00	NYMEX CRUDE OIL  JUNE    - $61.70 - $64.20
MULTI COMMDITIES EXCHANGE (MCX)
MCX Gold June:  A Break of 9080 will result in 9132 and 9221. On the lower side as long as 8960 holds, downside is limited. Falls below 8960 then 8899 and 8820 and 8702 are the targets.   MCX Silver July:  A Break of18817 will result in 19076 and 19386. On the lower side as long as 18315, downside is limited. Falls below 18315 then 18208, 18063 and 17750 are the targets.   MCX Copper June: 322.00 is the key intra day support. A consolidated fall below 322 will result in 315.60 and 307.10, with 295.30 as the key medium term support. On the higher side only a break of 334.20 will result in gains to 340.60 and 345.20.
GENERAL MARKET CONDITIONS
A weaker US dollar has resulted in subsidiaries remitting more dollars to the parent company in US. This results in higher net profits of companies based in US and higher US equity markets despite slowing US economy. Due to the increase in the US dollars received by the parent company from its subsidiaries, the parent company is overflowing with cash. There is lack of new business avenues in the world. The end result the parent company scouts for the small and emerging fishes in the business ocean and buy’s them out, despite unrealistic valuations. This is being done by more and more companies and continued rise in mergers and acquisition across of the globe. Considering the pace of such developments, it seems we are headed towards a oligopolistic market economy which has the potential of moving towards cartelization and consumers paying a higher price for goods and services. This is just one of the possible scenarios.  Ultimately gold and silver will benefit. How? Some of the mergers and acquisitions will have an untimely death in the event a slowdown in global growth and slowdown in global consumer spending. More traders will be inclined towards investing in precious metals than equities.   The interest rate picture is clear after the bank of England meeting, the European central bank meeting and the Fed meeting last week. This will support carry trades and one should expect further weakness of the US dollar against the euro and sterling and gains of the US dollar against the yen this week. Carry trades should also support stock markets and commodity prices from a major correction. Base metals prices are once again very critical for gold and silver prices direction.
GOLD -- JUNE FUTURE
$679.50 is the initial resistance with $687.10 as the key resistance.$663.40 is the key weekly support and a close below the same will result in losses to $651.40.
SILVER -- JULY  FUTURE
It needs to break $1354 - $1372 zone for further gains this week $1404 and $1437. On the lower side $1302 is the key weekly support.
Happy Profitable Trading
Services provided: Please register in our website www.insigniaconsultants.in  for a free 14 days trial service for an in-dept analysis on metals and energies along with intra day and positional calls on MCX. NCDEX and Comex markets. SMS service also provided.
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 Monday, 14 May 2007 | Digg This Article

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

Previous Articles by Chintan Karnani, Insignia Consultants

© 1995 - 2019

Live GoldSeek Visitor Map | Disclaimer