-- Posted Thursday, 29 November 2007 | Digg This Article | Source: GoldSeek.com

INSIGNIA CONSULTANTS
Precious Metals Market Update for 29th November, 2007
GOLD				SILVER
COMEX GOLD FEBRUARY FUTURE -- $810.0				COMEX SILVER -- MARCH FUTURE -- $1450.0
EXPECTED TRADING RANGE
GOLD FEBRUARY 08   -- $798.0 -- $838.00				SILVER  MARCH 08  -- $1404.0 - $1476.00
COPPER AND CRUDE OIL -- EXPECTED TRADING RANGE
COPPER MARCH 08   -- $296.00 - $320.00				NYMEX CRUDE OIL   - $92.80 - $19.60
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COPPER MARCH TECHNICAL LEVELS
SUPPORT				RESISTANCE
S1	S2	S3	S4	R1	R2	R3	R4
$269.00	$277.00	$287.60	$292.30	$307.60	$311.50	$317.60	$320.00
GENERAL MARKET CONDITIONS
November is coming to an end. Precious metals and base metals have traded in opposite direction. What next in December? In the first three weeks of December we expect precious metals, base metals and energies to rise. In the last week, there could be year end profit taking ahead of Christmas and New Year vacations which will give opportunity to invest once again. The Fed cut will boost equities and base metals. Volatility will fall in December. Once again energy prices and the US dollar will be the key for every market. In December the US dollar will gain if and when there is short covering of US dollar shorts. I find zinc an attractive investment for December as the risk to return ratio is in favor of the buyer. Interest rate cuts globally in December and in 2008 will boost demand for base metals and zinc is highly oversold.
Silver has unperformed so far in 2007. Please do not write off silver. Silver should outperform gold in December 07 to February 08. In 2007 silver got bogged down due to the over hype. Traders went heavily long in the first quarter of 2007 only to incur losses. Silver's hype is over and investors will realize that silver provides more value than gold or any other precious metals in the medium term to long term. The prime reason for gold's rise is the transition from the US dollar standard to gold standard, apart from fundamentals of demand and supply. Whereas silver is an industrial metal as well as a precious metal. There is a dual usage of silver. Silver's demand as an anti pollutant has been growing from use in washing machines to heavy industries. Silver will also act as alternative to platinum. Those who prefer to wear white jewelry and cannot afford platinum will resort to silver jewelry. Silver jewelry demand will only rise.
Since silver has dual usage, greater volatility than gold or any other precious metal is logical. I will prefer silver as a long term investment than gold; however one's portfolio in metals should be diversified. Please do not keep all your eggs in one basket.
DAILY TRADING STRATEGY
Remain on the sidelines despite the bullish trend and buy gold on any $10 dip or sell on any $10-$12 rise stop loss $4 each. Buy silver on dips stop loss below $1440
GOLD -- FEBRURAY FUTURE
A close over $796.80 tomorrow will result in $847 and $888.20 in December. Only a daily close below $775.20 will result in bearish trend in December.
SILVER -- MARCH FUTURE
Only a daily close below $1398 will result in silver in a medium term bearish zone for $1325. Intra day silver to break $1478 to be in bullish zone and target $1526 once again.
COPPER -- MARCH FUTURE
Copper breaks and holds $307.60 then $311.50 and $324 are the targets. On the lower side, intra day as long as $292.30 holds, downside will be limited.
NYMEX CRUDE OIL --  FUTURE
As long as crude oil holds $87-$88 will target $100+. At lower levels value based buying will support crude oil.
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 Thursday, 29 November 2007 | Digg This Article | Source: GoldSeek.com

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