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-- Posted Wednesday, 10 October 2007 | Digg This Article | Source: GoldSeek.com

GOLD				SILVER
EXPECTED TRADING RANGE
GOLD DECEMBER   -- $732.50 -- $758.00				SILVER  DEC   -- $1324.0 - $1400.00
COPPER AND CRUDE OIL -- EXPECTED TRADING RANGE
COPPER DEC   -- $357.40.00 - $368.70				NYMEX CRUDE OIL   - $78.20 - $82.60
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GOLD DECEMBER TECHNICAL LEVELS
SUPPORT				RESISTANCE
S1	S2	S3	S4	R1	R2	R3	R4
$723.80	$726.20	$732.20	$739.80	$747.20	$750.40	$754.50	$761.00
GENERAL MARKET CONDITIONS
Interest rate uncertainty prevails as the minutes of the Fed meeting adopted the middle of the road stance. The Fed said that they will be looking forward to future economic numbers for interest decisions. If the focus of Fed is on growth, the Fed will have to cut interest rates. If the focus at any point of time shifts to inflation, then Fed may not cut interest rates. None of the central banks like uncertainity. We expect the Fed and other central banks to be more certain on their interest rate outlook. Overall weakness for the US dollar will continue but traders will remain on the sideliness as a pullback can happen anytime. Gold will benefit from interest rate uncertainity.
Silver has finally showed it class yesterday. Silver is the most undervalued metal. Investment interest in silver should rise over the next few weeks. Silver bulls need not worry. Silver can rise $1 a day for few sessions and catch up with gold. Silver provides a better investment oppurtunity that gold as the risk to return ratio is greater. But silver is not for the light hearted as volatility will increase over the next few weeks. Copper has fallen on expectations that the peru strike will end soon. However expectations that copper will be in deficit in 2008 is preventing traders from going too short.
Gold and silver will fall if and only if the US dollar gains and crude oil prices fall. If they do not move in the same direction then it will be a volatile trade with a buy on dips strategy.
MCX -- LEAD OCTOBER FUTURE (PRICES IN INDIAN RUPEE'S)
SUPPORT				RESISTANCE
S1	S2	S3	S4	R1	R2	R3	R4
135.80	140.20	143.40	147.90	153.80	158.20	160.20	163.80
MCX -- LEAD OCTOBER FUTURE (PRICES IN INDIAN RUPEE'S)
150 price target achieved for lead. 159.30 is the next target as long as 143.40 holds. As prices rise from the current levels, the chances of a puuback also increase.
GOLD -- DECEMBER FUTURE
Gold targets $754 and $787 as long as $732 and $724 holds.
COPPER -- DECEMBER
Copper fell after failure to break technical congestion of $375-$380 and can test 200 day MA of $344.20. Initial support at $357.0
NYMEX CRUDE OIL --  FUTURE
Crude oil has a key intra day support $76.80 and only a daily close below $76.80 will result in further losses to $72.20. On the higher side it needs to break $83-$85 for gains.
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 Wednesday, 10 October 2007 | Digg This Article | Source: GoldSeek.com

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