-- Posted Thursday, 26 July 2007 | Digg This Article

EXPECTED TRADING RANGE
GOLD AUGUST  -- $667.00 -- $690.00				SILVER  SEPT   -- $1300.0 - $1360.00
COPPER AND CRUDE OIL -- EXPECTED TRADING RANGE
COPPER SEPT   -- $350.10.00 - $370.50				NYMEX CRUDE OIL  AUGUST   - $74.25 - $78.80
GOLD AUGUST TECHNICAL LEVELS
SUPPORT				RESISTANCE
S1	S2	S3	S4	R1	R2	R3	R4
$662.20	$667.00	$669.80	$674.40	$678.60	$684.80	$688.00	$691.50
GENERAL MARKET CONDITIONS
Companies and fund manager are finding it hard to sell their debt. Kohlberg Kravis Roberts & Co.'s banks, led by Deutsche Bank AG, failed to sell 5 billion pounds ($10 billion) of senior loans to fund the leveraged buyout of Alliance Boots Plc. KKR's eight underwriters will sell at least 1.75 billion pounds of junior loans, said the people who declined to be identified because the discussions are private. Chrysler abandoned plans to sell $12 billion of loans to complete its purchase by Cerberus Capital Management LP after investors balked at purchasing the high-yield, high-risk debt.  The risk of owning the bonds of JPMorgan Chase & Co. and Goldman Sachs Group Inc. jumped after the banks got stuck with $10 billion of Chrysler loans that investors refused to buy. Credit-default swaps on $10 million of JPMorgan bonds jumped $7,000 to about $50,000. Goldman credit-default swaps surged almost $6,000 to $67,000, the highest since November 2002. An increase in the five-year contracts, used to bet on the companies' creditworthiness, signals deterioration in investor confidence. The spill over effect of US housing slump is beginning to show up. The scale of the same is very minute which it starts to pick up and spreads into Eurozone and other developed nations could cause sustained turbulence in the markets. Investor confidence in debt instruments has vanished in a flash. Gold and silver and commodities and energies will benefit from the same as they investors increase their investments.   The biggest beneficiary of US debt market problem will be India and other emerging markets. Hedge funds are not just investing in Indian equities but also in Indian debt markets in a big way, which is a sign of confidence. They are investing for the long term. The same is happening with other emerging markets.  The so called summer correction in the Sensex did not happen this year.  Probably before the end of the quarter, there may be correction.   The only supporting factor for gold and silver is crude oil as it rose by $3. The US dollar has gained on profit taking. Gold, silver have underperformed crude oil. Tomorrow’s close will be significant. A close below the key technical support will result in further losses.
GOLD -- AUGUST FUTURE
Gold needs to hold 100 day MA of $667.  Only a consolidated fall below $667 will result in losses to $662.20. Resistance at $678.10, $684.80 and $691.50.
NYMEX CRUDE OIL -- AUGUST FUTURE
$77.40 is the initial resistance with $79.50 and $82.29 as the key resistances. As long as $72.09 holds on closing basis, downside will be limited. A consolidated fall below $72.09 will result in $69.80
Happy Profitable Trading
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-- Posted Thursday, 26 July 2007 | Digg This Article

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