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-- Posted Friday, 14 December 2007 | Digg This Article | Source: GoldSeek.com

INSIGNIA CONSULTANTS
Precious Metals Market Update for 14th December, 2007
GOLD				SILVER
COMEX GOLD FEBRUARY FUTURE -- $807.30				COMEX SILVER -- MARCH FUTURE -- $1433.0
EXPECTED TRADING RANGE
GOLD FEBRUARY 08   -- $792.0 -- $823.00				SILVER MARCH 08  -- $1396.0 - $1500.00
COPPER AND CRUDE OIL -- EXPECTED TRADING RANGE
COPPER MARCH 08   -- $293.00 - $311.00				NYMEX CRUDE OIL   - $90.50 - $97.80
COPPER MARCH TECHNICAL LEVELS
SUPPORT				RESISTANCE
S1	S2	S3	S4	R1	R2	R3	R4
$277.60	$288.80	$293.20	$296.80	$300.20	$307.60	$317.30	$324.10
GENERAL MARKET CONDITIONS
I am riding on a “Dune Buggy” as far as movements in the markets are concerned. One day sharp rise, followed by a sharp fall only to recover the next day. This kind of movement has resulted in more and more traders becoming short term oriented and is preventing them from taking a medium term view. However the US dollar has been the catalyst for all the volatility. A weaker dollar results in higher crude oil prices, which in turn supports precious metals and vice-versa. There are still huge short positions in US dollar and positive news like sharp rise November US retail sales resulted in some of the US dollar shorts getting squared off and the subsequent effect on precious metals and energies. The sharp rise in PPI is also due to lower base effect which is continue to affect PPI prices in the first quarter of 2008 as crude oil prices were lower in the first quarter of 2007. If December retail sales perform like November markets will soon be reducing the possibility of a Fed rate cut in January also.
Technical picture gold is bullish. However gold can fall $30 and still maintain the bullish trend intact. However it a momentum markets technical trade is applicable only when key supports are tested. Silver is in the woods and a lower close today will alter the technical picture to short term bearish.
COPPER -- MARCH FUTURE
Copper has managed to hold $293.30 and needs to hold the same to prevent a fall to $277. On the higher side it needs to break $307 and $314 for gains.
NYMEX CRUDE OIL -- FUTURE
Back to square one as it targets $100 once again. On the lower side as long as $90.40 holds, downside will be limited.
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 Friday, 14 December 2007 | Digg This Article | Source: GoldSeek.com

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