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-- Posted Thursday, 9 August 2007 | Digg This Article

GOLD				SILVER
COMEX GOLD DECEMBER FUTURE -- $683.90				COMEX SILVER -- SEPT FUTURE -- $1313.50
EXPECTED TRADING RANGE
GOLD DECEMBER   -- $676.00 -- $691.00				SILVER  SEPT   -- $1298.0 - $1345.00
COPPER AND CRUDE OIL -- EXPECTED TRADING RANGE
COPPER SEPT   -- $338.40.00 - $356.70				NYMEX CRUDE OIL  AUGUST   - $69.60 - $75.80
MCX -- SILVER SEPTEMBER FUTURE (PRICES IN INDIAN RUPEE'S)
SUPPORT				RESISTANCE
S1	S2	S3	S4	R1	R2	R3	R4
17,214.00	17,485.00	17,631.00	17,745.00	17,845.00	18,959.00	18,068.00	18,259.00
GOLD DECEMBER TECHNICAL LEVELS
SUPPORT				RESISTANCE
S1	S2	S3	S4	R1	R2	R3	R4
$663.10	$670.30	$676.20	$682.10	$686.90	$695.40	$701.00	$703.30
GENERAL MARKET CONDITIONS
US president George Bush reassured the investment community that the US economy strong and that they need not worry about volatile stock markets. Yesterday, the Fed came out with similar words on US economic growth and US interest rates. These moves are to ensure that stock markets, carry trades continue and the US dollar trades with a softer bias. The rise in US stock markets is beneficial for the whole world and not just for US investors. Bank of England said yesterday that interest rates will be raised once more in 2007 to curb inflation. European central bank had also said of its intentions to raise interest rates next month. Australian central bank raised interest rates yesterday. Basically, all the central banks are trying to ensure that carry trades flourish and stock markets keep on rising, which is an indirect way of ensuring that adequate liquidity remains.
These are just short term measures by global leaders and central banks to prevent an immediate panic. Once all the central bankers have stopped raising interest rates and corporate profits increase below expectations, carry traders volumes will fall. In the short term, equities will rise, however I am a bit apprehensive over the medium to long term prospects of US stock markets. Indian stock markets will remain firm on sound economic fundamentals.  The biggest beneficiary will be gold and silver as more long term investors switch to gold.
Gold and silver are being dictated by the US dollar and crude oil prices. So far, the bullish trend remains intact as key medium term technical supports are holding. Gold and silver should break out of the recent trading range soon.
MCX SILVER  -- SEPTEMBER FUTURE (PRICES IN INDIAN RUPEE'S)
MCX silver targets INR 17959 and INR 18250 as long as INR 17485 holds. Initial support at INR 17630.
GOLD -- DECEMBER FUTURE
$686.90 is the key point. Gold needs to float over $686.90 for $695.40 and $701.0. On the lower side $676.20 is the key weekly support and a consolidated fall below the same will result in $670.30.
Happy Profitable Trading
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-- Posted Thursday, 9 August 2007 | Digg This Article

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