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-- Posted Thursday, 24 January 2008 | Digg This Article | Source: GoldSeek.com

INSIGNIA CONSULTANTS
Asian Metals Market Update for 24th January, 2008
GOLD	SILVER
COMEX GOLD FEBRUARY FUTURE -- $891.30	COMEX SILVER -- MARCH FUTURE -- $1609
EXPECTED TRADING RANGE
GOLD FEBRUARY 08   -- $875.0 -- $903.00	SILVER  MARCH 08  -- $1568.0 - $1638.00
COPPER AND CRUDE OIL -- EXPECTED TRADING RANGE
COPPER MARCH 08   -- $301.00 - $327.00	NYMEX CRUDE OIL   - $86.00 - $91.00
GENERAL MARKET CONDITIONS
There is some section of the market which expects that the Fed will cut interest rates by another 0.75% next week which has driven stock indices higher and caused the US dollar to weaken. If the Fed delivers another 0.75% cut, then it will be creating another asset bubble which this time will be commodities. Interest rate cuts are no solution for all the past ills of the economy. To remove the mouse you bring in a cat, now the cat gets out of control and you get the dog to remove it, when the dog gets out of control you get the tiger to remove him. What happens when the tiger gets out of control, you break down. The mouse, dog and tiger here are asset bubbles. The US economy had the dot come bubble in early 2000 followed by the subprime and housing bubble and probably in future the commodities bubble which will be uncontrollable in future. The Fed should strengthen the foundation of the US economy and not resort to short term measures of aggressive interest rate cuts. The more interest rate cuts, the faster will be the pace of the rise of gold.
Most of the countries including India rely on the bull trend of the stock markets for a certain percentage of growth. A fall in stock markets hurts everyone. This week’s fall in Indian stocks markets resulted in some of my stocks falling by more than fifty percent. Although they have recovered fast but still for the rest of the year, I will be booking profits on my short term stock holding  just as I do in gold and other metals. Some of the Indian stock fell more than fifty percent. Gold fell less than ten percent. Indian stock markets give much higher returns in gold, therefore aggressive investing in gold futures is not recommended for them. However after this weeks fall, diversification into gold whether by way of futures trading or exchange traded funds (ETF) is a must for everyone.
GOLD -- FEBRURAY FUTURE -- INTRA DAY PIVOT:$903
A break of $903 will result in $907 and $919. On the lower side only a fall below $874 will result in further losses. Expect wider trading range to continue.
COPPER -- MARCH FUTURE -- INTRA DAY PIVOT: $327.0
Copper managed to hold $301 and needs to break $317 and $326 for gains.
NYMEX CRUDE OIL --  FUTURE -- INTRA DAY PIVOT: $90.40
Failure of crude oil to break and hold $88.80 will result in a fall to $82.20. A break of $88.80 will result in $93.20
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, 24 January 2008 | Digg This Article | Source: GoldSeek.com

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