-- Posted Monday, 17 September 2007 | Digg This Article

EXPECTED TRADING RANGE
GOLD DECEMBER   -- $712.70 -- $728.00				SILVER  DEC   -- $1224.0 - $1305.00
COPPER AND CRUDE OIL -- EXPECTED TRADING RANGE
COPPER DEC   -- $332.40.00 - $346.70				NYMEX CRUDE OIL   - $75.20 - $80.60
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SILVER DECEMBER TECHNICAL LEVELS
SUPPORT				RESISTANCE
S1	S2	S3	S4	R1	R2	R3	R4
$1,209.00	$1,224.00	$1,248.00	$1,266.00	$1,295.00	$1,305.00	$1,314.00	$1,330.00
COPPER DECEMBER  TECHNICAL LEVELS
SUPPORT				RESISTANCE
S1	S2	S3	S4	R1	R2	R3	R4
$319.70	$321.70	$326.90	$332.10	$340.00	$343.60	$347.00	$352.00
GENERAL MARKET CONDITIONS
All eyes are on the Fed meeting tomorrow for a short term direction on the US dollar. Overall direction for the US dollar is skewed more towards the downside. Interest rates differentials and reemergence of carry trade will ensure that the US dollar continues to remain weak for the rest of the year. There will be corrections and pullback rallies which are a part of medium term bear phase for the greenback.
There is still a degree of apprehension over the rise in gold prices. This has resulted in traders going short at higher levels. When their stop losses get hit, they convert their short’s into longs which adds to the price rise. This is the first signal of the next phase of rally in gold. In the beginning of any bull market, the above trading pattern is generally the case. One this gets over, gold will correct.
Safe haven demand also stirred gold. Investment in gold has also increased (whether by way of futures or ETF) as investors prefer to play if safe till certainty returns globally. As and when safe haven status is withdrawn from gold,  prices will fall.Between September 2005 and May 2006, spot gold had risen from $550 to $730 in less than 9 months. History will be repeated in gold, but the pace of rise will be much slow and there will be sharp corrections in between while maintain the bullish trend with the successive lower base getting higher. Many Indian traders and jewelers may not agree with me.  However do not expect gold to rise to $850.0 in 2007.
China and other central banks are yet to increase their gold reserves. Sooner than later they will start to diversify into gold which will add further impetus to gold prices. I once again repeat something which I have been repeating over the past few years “ the world is switching to a gold standard from a US dollar standard.
MCX -- ZINC SEPTEMBER FUTURE (PRICES IN INDIAN RUPEE'S)
SUPPORT				RESISTANCE
S1	S2	S3	S4	R1	R2	R3	R4
107.90	109.20	111.10	114.80	118.30	120.40	122.00	125.60
MCX -- ZINC SEPTEMBER FUTURE (PRICES IN INDIAN RUPEE'S)
Only a break of 120 will result in gains to 122. Support at 114.80 and 109. There are huge long positions over 120.0 which are yet to be squared off
SILVER -- DECEMBER FUTURE
Silver targets $1314 and $1354 as long as its floats over $1248. Falls below $1248 then $1224 and $1209.
NYMEX CRUDE OIL --  FUTURE
Crude needs to break $80.60 jinx for gains to $86. On the lower side as long as $77.60 holds downside is limited.
Happy Profitable Trading
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 Monday, 17 September 2007 | Digg This Article

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