-- Posted Monday, 19 November 2007 | Digg This Article | Source: GoldSeek.com

GOLD				SILVER
COMEX GOLD DECEMBER FUTURE -- $793.50				COMEX SILVER -- DEC FUTURE -- $1464.0
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COPPER DECEMBER  TECHNICAL LEVELS
SUPPORT				RESISTANCE
S1	S2	S3	S4	R1	R2	R3	R4
$298.50	$301.40	$312.00	$316.00	$326.00	$333.00	$339.50	$343.80
GENERAL MARKET CONDITIONS
This is a thanksgiving week. Volumes will reduce towards the second half of the week. This is also a very crucial week for crude oil and if it fails to break $100 there could be losses. If US retail sales over the thanksgiving weekend exceed expectations the US dollar could gain in the short term. Overall it should be technical trade in all the metals and energies. At lower levels, physical demand should rise and late entrants will also invest which should result in another round of spike in precious metals.
The US dollar has started the week on a negative note as oil producing Middle East countries discuss a proposal to revalue their currencies early next month. There are more negatives for the US dollar than positives and traders are ignoring the US dollar positive news. The decline in the US dollar against all almost the currencies and all commodities is not all about US economic growth. It is also about how various central banks with huge US dollar reserves manage it so that the real value of their foreign exchange reserves remains intact. In a sliding US dollar environment they are bound to invest elsewhere. The same with exporters and traders of different countries who will try to hedge themselves against US dollar fall by shifting away from the US dollar into other currencies. As long as the US dollar falls, precious metals will remain firm and emerging market equities (including India) will continue to rise.
In 2005 thanksgiving, Japanese traders had lifted gold by nearly $20 to $465 and thereafter we have never seen these prices. Please do not get caught napping this week as I expect this week to be charged and fully loaded including on the thanksgiving day. Use bull spreads to hedge your risk in precious metals.
COPPER -- DECEMBER
As long as copper holds $296-$297 zone, downside will be limited and it will once again target $333 and $346.
NYMEX CRUDE OIL --  FUTURE
$91-$96 range will continue and only a break of the same will result in $86 or $102.
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, 19 November 2007 | Digg This Article | Source: GoldSeek.com

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