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-- Posted Monday, 7 January 2008 | Digg This Article | Source: GoldSeek.com

INSIGNIA CONSULTANTS
Asian Metals Market Update for 7th January, 2008
GOLD	SILVER
COMEX GOLD FEBRUARY FUTURE -- $859.50	COMEX SILVER -- MARCH FUTURE -- $1533.50
EXPECTED TRADING RANGE
GOLD FEBRUARY 08   -- $847.0 -- $873.00	SILVER  MARCH 08  -- $1483.0 - $1560.00
COPPER AND CRUDE OIL -- EXPECTED TRADING RANGE
COPPER MARCH 08   -- $307.00 - $325.00	NYMEX CRUDE OIL   - $95.10 - $99.00
GENERAL MARKET CONDITIONS
US December payrolls numbers suggest that the Fed will cut interest rates by one percent in 2008 while the European Central Bank may not cut interest rates in the first half of 2008.  Interest rate cuts are always bullish for gold. The US dollar will trade with a softer bias in the first quarter, but the action will be more in euro/sterling and other non US dollar crosses. Gold is directly linked to crude oil as can be seen from Friday’s move which will continue for the rest of the month. Concerns that slower US economic growth will result in lower demand resulted in profit taking. At the moment its just profit taking for crude oil. Vacations are over and net incremental demand by way of travel and tourism will fall in the first quarter of 2008. If global growth is to slowdown in 2008 why should crude oil and base metals rise?
Volatility will rise this week in gold and silver. There is lack of major economic numbers except the bank of England meeting and European central bank meeting. The net long position in gold is at an historical high. Gold will fall when profit taking comes up (if any). There are also huge short positions in base metals.
GOLD -- FEBRURAY FUTURE -- INTRA DAY PIVOT:$847.60
For the week as long as gold holds $847.60 downside will be limited and gold will target $878. Gold falls below $847.60 then $835 and $823 are targets.
NYMEX CRUDE OIL --  FUTURE -- INTRA DAY PIVOT: $95.20
Failure of crude oil to break $102 this week will result in a fall to $95.60 and $92.60.
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, 7 January 2008 | Digg This Article | Source: GoldSeek.com

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