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-- Posted Friday, 20 July 2007 | Digg This Article

EXPECTED TRADING RANGE
GOLD AUGUST  -- $671.40 -- $686.20				SILVER  SEPT   -- $1313.0 - $1359.00
GOLD AUGUST TECHNICAL LEVELS
SUPPORT				RESISTANCE
S1	S2	S3	S4	R1	R2	R3	R4
$660.20	$664.40	$669.10	$674.40	$678.10	$681.80	$684.80	$691.50
GENERAL MARKET CONDITIONS
Precious metals are being boosted by the sub prime rout while base metals getting supported by Chinese unstoppable growth. All the markets have once again started rising bit it equities, commodities, or treasuries. Fed Chairman Bernanke acknowledged that sun prime losses could hit $50-$100 billion. Sub prime losses is the legacy of Mr.Greenspan which Bernanke has inherited. He is trying to his best to do the damage control, which is a bit too late. Gold and silver will continue to benefit as investors once again start to diversify.   Moody's Corp. Chief Financial Officer Linda Huber was sued by an investor who said Huber failed to disclose that Moody's assigned ``excessively'' high ratings to bonds backed by subprime mortgages. Moody's investors paid artificially high prices for the company's stock because of Huber's ``false and misleading'' statements, Raphael Nach said in a complaint filed today in federal court in Chicago. Nach seeks to represent all investors who bought Moody's stock between Oct. 25, 2006, and July 10, 2007, and he asks for unspecified damages. In our view credit rating companies are basically death-rating companies. Death of hard earned savings of the retail investors. Still the bait/greed for more draws investors to the same fund managers whose tummy keeps on expanding. It keeps on happening over and over again, all under the supervision of the credit rating agency. It’s happening in US, similar things will happen in India in the next five to seven years. India investors should take a lesson from US sub mortgage mess and be choosy else US story will end up in India as the same fund managers and credit/death rating agencies have their presence in India.   Crude oil has a lagging effect. Crude oil prices fell below $60.0 a barrel has resulted in January, the effect of which by way of higher global consumption and global is being felt in the second quarter. The effects of crude oil over $70.0 a barrel will be felt from December, 2007 onwards and not now. I disagree with the central bank policy of letting their currency appreciate, to that inflation is controlled. These moves should back fire and should retard growth in their countries. Exporters are being hit by higher commodity prices and wage price inflation and the currency gain effect widens the hole in the pocket. The net effect, in the first quarter of 2008, global growth will slowdown. Base metals (except silver and nickel) prices should form a top in 2007.   There could be some profit taking today. However unstopped crude oil prices will result in traders either squaring off or going long. Traders will rather wait for next week and then go short.
GOLD -- AUGUST FUTURE
Gold needs to break $678.10-$680 for $684.80 and $691.0. On the lower side $669.10 is the initial support with $663.0 as the key support.
COPPER -- SEPTEMBER FUTURE
Copper, can target $380 and $400 is $356 holds on closing basis. Falls below $356 then $351 and $349. are the targets
Happy Profitable Trading
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-- Posted Friday, 20 July 2007 | Digg This Article

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