-- Posted Tuesday, 5 June 2007 | Digg This Article

GOLD	SILVER
COMEX GOLD AUGUST FUTURE -- $676.80	COMEX SILVER JULY FUTURE -- $1376.50
EXPECTED TRADING RANGE
GOLD JUNE -- $670.00 -- $683.20	SILVER  JULY  -- $1344.0 - $1404.00
COPPER AND CRUDE OIL -- EXPECTED TRADING RANGE
COPPER JULY   -- $343.10.00 - $358.00	NYMEX CRUDE OIL  JUNE    - $64.20 - $68.20
GENERAL MARKET CONDITIONS
We are living in a paper market. Global stock markets are rising endlessly which has been the prime reason for global growth. Some call it financial leverage and by different names. But the key is global growth is all about paper. Not a single country would like their stock markets to fall as they fear that it could result in fall in growth. Easy income from stock markets and other stock related derivative products results in higher consumer spending, savings and investments which creates further paper and the cycle begins. Upto a certain limit rise in stock markets are a way to propel consumption related growth, but when it rises in way that there could be a danger of boom to bust cycle in stock markets, it should be unacceptable by central banks. But this is not the case. China, India or even USA central banks policy are such that it makes availability of free money. Indian call money rates fell to 0.01% towards close last Friday and there was still no takers for the same. The India government is very scared of any smallest indications of a sustained fall in stock markets. Chinese authorities have been unsuccessful in preventing gains in Chinese stocks. (Please note that a few days correction in stock markets followed by a greater rise is a part and parcel of a bull run). US and European equity markets are dominated by merger and acquisitions related news. None of the central banks want to raise interest rates as it could lead lower growth, even at the cost of environment. Differences have creeped up between European central bank (ECB) chief Trichet and  new French president Sarkozy over interest rates. The Fed has stopped publishing M3 money supply numbers from March 2006. The stock markets and other paper instruments may rise for another twelve to eighteen months under the most optimistic scenarios and the bust in paper could lead to global recession. Central banks along with the handful of politicians will not be able to do anything. Gold and precious metals will be the best alternative investment on dwindling value of paper instruments.   Crude oil prices were buoyed by Oman cyclone which could threaten shipments from the Arabian sea. The US dollar continues to trade with a weaker bias on lack of major market moving news. If there is a any major category 5 hurricane in the Gulf of Mexico, crude oil still has a slight possibility of nearing towards the century mark. Once again it was the base metals which supported gold and silver prices we expect this tend to continue today also.
GOLD -- AUGUST FUTURE
Gold needs to break $679.10 for $684.50 and $688.70. On the lower side a consolidated fall below $671.40 will result in $663.50.
SILVER -- JULY  FUTURE
Silver needs to hold $1374-for $1400 and $1432. On the lower side $1354 is the initial support with $1339 and $1319 as the key support.
Happy Profitable Trading
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-- Posted Tuesday, 5 June 2007 | Digg This Article

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