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
FOR ACTUAL AND FULL REPORTSplease register on our new website www.insigniaconsultants.infor a free trial service for an indepth analysis on metals and energies along with intra day and positional trading calls on MCX. NCDEX and COMEX and other INTERNATIONAL markets. SMS on Mobiles, FAX and MESSENGER service also available.
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 employeeshave any liability
for any losses incurred in connection with any decision made, action or inaction taken by any
partyin reliance upon the information provided in this material; or in any delays, inaccuracies,
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
The content on this site is protected
by U.S. and international copyright laws and is the property of GoldSeek.com
and/or the providers of the content under license. By "content" we mean any
information, mode of expression, or other materials and services found on GoldSeek.com.
This includes editorials, news, our writings, graphics, and any and all other
features found on the site. Please contact
us for any further information.
Disclaimer
The views contained here may not represent the views of GoldSeek.com, its affiliates or advertisers. GoldSeek.com makes no representation, warranty or guarantee as to the accuracy
or completeness of the information (including news, editorials, prices, statistics,
analyses and the like) provided through its service. Any copying, reproduction
and/or redistribution of any of the documents, data, content or materials contained
on or within this website, without the express written consent of GoldSeek.com,
is strictly prohibited. In no event shall GoldSeek.com or its affiliates be
liable to any person for any decision made or action taken in reliance upon
the information provided herein.
OilSeek.com
