-- Posted Tuesday, 17 July 2007 | Digg This Article

GOLD AUGUST TECHNICAL LEVELS
SUPPORT				RESISTANCE
S1	S2	S3	S4	R1	R2	R3	R4
$653.10	$656.90	$660.20	$664.40	$666.90	$671.10	$674.40	$678.10
SILVER SEPTEMBER TECHNICAL LEVELS
SUPPORT				RESISTANCE
S1	S2	S3	S4	R1	R2	R3	R4
$1,254.00	$1,276.00	$1,287.00	$1,301.00	$1,313.00	$1,324.00	$1,346.00	$1,358.00
COPPER SEPTEMBER  TECHNICAL LEVELS
SUPPORT				RESISTANCE
S1	S2	S3	S4	R1	R2	R3	R4
$339.50	$344.70	$349.80	$351.10	$357.00	$362.20	$368.70	$374.50
GENERAL MARKET CONDITIONS
Gold and silver fell due to profit taking ahead of the Fed’s semi annual testimony. Gold, silver as well as copper have underperformed in comparison to the weakness in the US dollar in 2007. This is a cause of concern. The US dollar index is heavily oversold at 80.38. If the US dollar makes a technical bounce gold and silver could be back to square one at $646 and $1235 (assuming geopolitical risk does not change). The only savior for gold and silver will be firm crude oil prices. So the next three days will be a real test for gold and silver and if they are unable to edge higher, one should expect profit taking.   Over the past twelve months, spot gold has been unable to hold over $670 for a long time. Initially there will be more sellers between $670-$690 than buyers, further some of the investors who invested over $680 will be using it as an exit opportunity. Spot gold is now trading in $645-$695 wider range for the past few months. Punters expect crude oil to rise to $90-$95 this year, which could be a reality. Gold is a consolidation phase before the next leg higher. In 2006 crude oil rose to $78 when the US dollar was firm. In 2007 the US dollar has been ripped apart, so the Opec will also not prefer a lower crude oil as the real value from proceeds of sale of crude oil is falling despite higher prices as most of the crude oil is billed in US dollars. The only for emergence of a bear trend in gold and silver over the next few months is a sustained correction in global stock markets, which seems to be defying all odds.
GOLD -- AUGUST FUTURE
It is consolidating in $660-$672 range and needs to break $672 for $678.10. On the lower side $656.90 is the key short term support.
NYMEX CRUDE OIL -- JULY FUTURE
Crude oil needs to hold $73.48 for $75.69 and $77.55. On the lower side $72.27 is the initial support with $70.35 as the key support.
Happy Profitable Trading
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-- Posted Tuesday, 17 July 2007 | Digg This Article

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