-- Posted Monday, 15 October 2007 | Digg This Article | Source: GoldSeek.com

GOLD				SILVER
COMEX GOLD DECEMBER FUTURE -- $757.10				COMEX SILVER -- DEC FUTURE -- $1398.50
EXPECTED TRADING RANGE
GOLD DECEMBER   -- $744.50 -- $766.00`				SILVER  DEC   -- $1388.0 - $1442.00
COPPER AND CRUDE OIL -- EXPECTED TRADING RANGE
COPPER DEC   -- $357.40.00 - $380.70				NYMEX CRUDE OIL   - $80.20 - $85.60
MCX traders can SMS their Name & Telephone to 9311139549 for a free trial.
SILVER DECEMBER TECHNICAL LEVELS
SUPPORT				RESISTANCE
S1	S2	S3	S4	R1	R2	R3	R4
$1,331.00	$1,353.00	$1,369.00	$1,388.00	$1,412.00	$1,426.00	$1,449.00	$1,467.00
GENERAL MARKET CONDITIONS
Physical gold demand in India at the current prices is not that spectacular. The retail investors believe that gold prices can fall anytime as they have memories of the fall from $730 to $550. But this time the market semantics are different. They are partly right as it remains to be seen how long can crude oil float over $80.0 a barrel without affecting growth and how long can central banks let their currency gains without affecting growth. However if gold prices stay at the current levels this week, demand will start once again. Last week I was speaking to some of the physical gold traders in Ahmedabad, they told me they were maintain a low inventory levels and that they will increase their gold inventory as and when prices fall near INR 9400/- per tonne grams.
We are living in a world of excess liquidity and paper assets. The Fed by cutting interest rates revived the carry trade which has resulted in the US dollar falling to historical lows against some of the currencies.  European central bank, bank of Japan etc had provided liquidity in August. The central banks believe that just pumping cash into to the system they can get rid of economic woes and pave the way for higher economic growth. Flooding the markets with excess money is just a short term and hassle free means of tiding over credit and awarding the risk takers. The risk takers now know that their country’s central bank will rescue them whenever the value of their paper assets collapse. This will result in greater risk appetite and falling value of paper assets. Excess liquidity adds to inflation and with crude oil prices already at a historical high inflationary pressures are bound to be remain.To cut short, there will be a time when paper assets will burst like a volcanic eruption. This will not happen in the next three to four years.
BSE Sensex has risen from 15000 to near 19000 in less than three months. I had invested at 15000 only to exit at 18000 on the belief that the swift rise in India equity markets is a part of emerging market bubble. But now I am investing on dips on certain specific stocks for the short term with trailing stop losses as I know that that the current rise in Indian stocks could last till the end of the quarter with the help of some corrections. Now I have got used the prices. There are a lot of retail investors who will get used to higher prices. This time the higher price of gold. Gold at INR 8800 is history for the next three to six months. Even I get a price of INR 9200 and below I will be happy and buy my needs to physical gold. I had brought my requirements at INR 8800/- and just wish I had invested more.
Precious metals are showing no signs of retracement. Markets will be looking forward to the G7 meeting this weekend on comments of a stronger Euro from ECB officials.
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)
A break of 153.80 will result in further gains to 156 and 159. On the lower side as long as 149.60 holds downside is limited.
SILVER -- DECEMBER FUTURE
Silver targets $1412-$1414 and further at $1444 as long as $1378 holds. A consolidated fall below $1378 will result in $1354 and $1324
NYMEX CRUDE OIL --  FUTURE
As long as crude oil floats over $78.60 there is very possibility of $85-$87. A consolidated fall below $78.60 will result in $76.0
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, 15 October 2007 | Digg This Article | Source: GoldSeek.com

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