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-- Posted Monday, 14 January 2008 | Digg This Article | Source: GoldSeek.com

INSIGNIA CONSULTANTS
Asian Metals Market Update for 14th January, 2008
GOLD	SILVER
COMEX GOLD FEBRUARY FUTURE -- $895.60	COMEX SILVER -- MARCH FUTURE -- $1629
EXPECTED TRADING RANGE
GOLD FEBRUARY 08   -- $893.0 -- $907.00	SILVER  MARCH 08  -- $1590.0 - $1660.00
COPPER AND CRUDE OIL -- EXPECTED TRADING RANGE
COPPER MARCH 08   -- $321.00 - $338.00	NYMEX CRUDE OIL   - $94.20 - $99.00
GENERAL MARKET CONDITIONS
Some sections of the market are betting on a fifty basis point cut by the Fed on 30th January which will result in further gains in gold and silver this week. The rise in gold has resulted in short term money flowing into gold and commodities in general. This week we have the US producer price Index (PPI) and consumer price index (CPI). Even if PPI and CPI come in higher than expected, the fed will choose growth instead of inflation in the short term. The US dollar is headed lower in the short term. Investors will be using declines in gold as an opportunity to go long. If global growth slows greater than expected base metals will fall as surplus widens. However crude oil may not fall as much.
I wonder what will happen to those companies who bought other companies under leveraged buyouts. If the US economy moves into recession, not just Japan even Europe will be affected sooner than later. Some of the buyouts may not be profitable and may have to be sold at lower prices. Although it’s too early to comment on the same, if it happens gold will zoom.
Various central banks by cutting interest rates are adding to liquidity. Even in commodities, base metals investors will switch to precious metals in uncertainty of slower global growth. Crude oil and energies will continue to draw greater investment interest on declines as slower global growth does not mean reduction in energy demand.  It will be a volatile week with an overall bullish trend in gold and silver.
GOLD -- FEBRURAY FUTURE -- INTRA DAY PIVOT:$888.0
Only a break of $907 will result in $918 and $938 as the next target. On the lower side as long as $888 and $872 holds, downside will be limited.
NYMEX CRUDE OIL --  FUTURE -- INTRA DAY PIVOT: $90.40
$87-$88 is the support zone for the week while only a break of $95.20 will result in $99 and further once again.
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, 14 January 2008 | Digg This Article | Source: GoldSeek.com

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