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-- Posted Wednesday, 18 July 2007 | Digg This Article

EXPECTED TRADING RANGE
GOLD AUGUST  -- $660.20 -- $671.00				SILVER  SEPT   -- $1288.50 - $1324.00
COPPER AND CRUDE OIL -- EXPECTED TRADING RANGE
COPPER SEPT   -- $344.10.00 - $366.50				NYMEX CRUDE OIL  JULY    - $71.25 - $75.80
GOLD AUGUST TECHNICAL LEVELS
SUPPORT				RESISTANCE
S1	S2	S3	S4	R1	R2	R3	R4
$656.90	$660.20	$663.60	$666.90	$669.80	$672.70	$676.20	$680.60
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 are caught between the US dollar and crude oil prices. I had mentioned in my yesterdays report that if crude oil prices fall, gold and silver could also fall. Yesterday it happened the same way.  In the short term gold and silver will be dictated by crude oil prices and the US dollar. Global growth is strong. Crude oil prices have a lagging effect and the result of higher crude oil prices by way of lower consumer confidence and business confidence will be felt in toe October to December quarter and not immediately. Consumers are being burdened not just from higher crude oil prices but also every rising prices agro commodities such as fruits, vegetables, bread etc. Increasing salaries is being offset by higher cost of living. Sooner that later retail consumption in developed nations will take a hit. Higher crude oil prices also implies firm core inflation and that interest rates may not be cut by the Fed. Sagging consumer confidence and higher crude oil prices will benefit gold and precious metals in the long term more than any other investment instrument.     The US dollar bears got another reason to rejoice after Bear Stearns told investors in one of its hedge funds that they won't get any money back after creditors forced it to sell assets at depressed prices. While a second fund still contains sufficient assets to cover the $1.4 billion it owes, there's very little value left for the investors. Hard earned saving of investors going into pockets of Fund managers. Expect US dollar bashing to continue which will support precious metal prices.   Gold, silver and copper are trading in a range and a break out is in the offing.  As long as the key technical supports hold, the medium term bullishness will remain intact. The two days are very crucial for gold.
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.
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-- Posted Wednesday, 18 July 2007 | Digg This Article

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