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-- Posted Monday, 1 October 2007 | Digg This Article

GOLD				SILVER
COMEX GOLD DECEMBER FUTURE -- $751.30				COMEX SILVER -- DEC FUTURE -- $1394.0
EXPECTED TRADING RANGE
GOLD DECEMBER   -- $739.70 -- $758.00				SILVER  DEC   -- $1340.0 - $1414.00
COPPER AND CRUDE OIL -- EXPECTED TRADING RANGE
COPPER DEC   -- $352.40.00 - $370.70				NYMEX CRUDE OIL   - $78.20 - $83.20
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GOLD DECEMBER TECHNICAL LEVELS
SUPPORT				RESISTANCE
S1	S2	S3	S4	R1	R2	R3	R4
$728.90	$732.10	$739.50	$746.50	$752.50	$757.90	$761.10	$769.50
GENERAL MARKET CONDITIONS
The pace of slide of the US dollar is a cause of concern. At the current pace euro/usd can reach to 1.50 in 2007. Most of the technical indicators suggest that a trend reversal can happen anytime. However it’s a momentum market and it’s very difficult to judge the life of momentum rallies. Concerns that the US economy could be moving into recession in 2008 has resulted in the US dollar sell and gains in gold and precious metals. Emerging market equities and currencies are gaining at a rapid pace as investors hedge against a slowdown in developed nations. The US dollar should gain and gold and silver should fall before the September payrolls numbers this Friday. The effects of huge layoffs will be felt in the last quarter. However most of the bad news has been factored in and the effect of worse US economic numbers by way of losses in the US dollar will be limited from the current levels.
I did rather be cautious in going short in US dollar and going long in gold at the current calls. I could rather prefer to buy some US dollar calls and gold puts at the current price for the short term as a hedge against a potential reversal. Gold can fall another $20-$30 from the current prices and yet maintain its bullish direction intact. Do not expect a one way traffic in precious metals and base metals. This week will be a charged one with greater volatility.
Indian commodity markets are closed tomorrow due to a national holiday. Traders who have a adverse position should hedge their open positions using spreads (Inter commodity or same commodity). This is just a precautionary call. Hedging strategies will depend on the risk appetite of the individual and will vary from individual to individual.
GOLD -- DECEMBER FUTURE
Gold needs to break $754-$757 for $768 and $787. The earlier resistance of $746.50 is the initial support with $726.50 as the key support.
NYMEX CRUDE OIL --  FUTURE
Crude oil targets $86 as long as it floats over $80.0. Key Support at 77.60
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, 1 October 2007 | Digg This Article

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