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-- Posted Friday, 7 September 2007 | Digg This Article

EXPECTED TRADING RANGE
GOLD DECEMBER   -- $692.70 -- $712.00				SILVER  DEC   -- $1222.0 - $1274.00
COPPER AND CRUDE OIL -- EXPECTED TRADING RANGE
COPPER DEC   -- $327.40.00 - $342.70				NYMEX CRUDE OIL   - $73.20 - $78.60
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GOLD DECEMBER TECHNICAL LEVELS
SUPPORT				RESISTANCE
S1	S2	S3	S4	R1	R2	R3	R4
$683.00	$686.80	$695.20	$698.00	$709.10	$719.10	$725.80	$739.60
GENERAL MARKET CONDITIONS
What a great way to begin a month for gold as it nears $700.0. Silver’s rise is not spectacular and I hope that the most under rated metal of 2007 is able to keep the momentum. It’s back to the same old debate of investing in paper assets versus hard assets. I have been mentioning in my previous reports that everyone should invest a small percentage of his investment in gold. Yesterday’s move justifies the same. Central bank annual gold sales will be over. Central banks will not there to manipulate the gold market after this month. It’s market forces that will drive the gold.
Physical gold demand has virtually come to a standstill in India after yesterday’s rise. Traders are buying only their daily minimum need. If and only if gold floats over $690 for a more than a week, that trading as well as retail demand will pick up in India. If spot prices in India rise over INR 9300 scrap sales will also rise initially. Once scrap sales are over, demand will pick up sharply.
European central bank and bank of England meeting’s are over. We have the Fed and bank of Japan meetings. ECB and BOE have not surprised the markets nor are the Fed and BoJ expected to do the same. The Fed may cut interest rates, if not a half a percentage, a quarter is more or less a possibility as they will not to destabilize the equity markets further. The ECB has been pumping in billions everyday which is a cause of concern in the medium term to long term. Excess money will prevent a slowdown in Eurozone in the short term, but in the long term, the revere will happen.
Technically gold and silver are bullish and have room for gains. There could be profit taking at higher levels which will add to the volatility.
MCX -- ZINC SEPTEMBER FUTURE (PRICES IN INDIAN RUPEE'S)
SUPPORT				RESISTANCE
S1	S2	S3	S4	R1	R2	R3	R4
100.00	111.70	114.50	117.80	120.30	122.30	124.80	127.60
MCX -- ZINC SEPTEMBER FUTURE (PRICES IN INDIAN RUPEE'S)
Under the worst case, we do see MCX september falling below INR 111.70. A consolidated fall below INR 111.70 will trigger investment stop losses. There are more long positions in Zinc than short positions. Zinc needs to break and hold 122-123 for gains to 127.
GOLD -- DECEMBER FUTURE
Gold nearly met our target of $709 and needs to break $709 for $719.10 and $725.80. On the lower side $698 is the initial support with $689.80 as the key support.
NYMEX CRUDE OIL --  FUTURE
Crude needs to break $77-$80 jinx for gains to $86. On the lower side as long as $72.66 holds downside is limited.
Happy Profitable Trading & Have a great weekend
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 employees  have any liability
for any losses incurred in connection with any decision made, action or inaction taken by any
party  in reliance upon the information provided in this material; or in any delays, inaccuracies,
errors in, or omissions of Information.

-- Posted Friday, 7 September 2007 | Digg This Article

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