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-- Posted Wednesday, 30 January 2008 | Digg This Article | Source: GoldSeek.com

INSIGNIA CONSULTANTS
Asian Metals Market Update for 30th January, 2008
GOLD	SILVER
COMEX GOLD APRIL FUTURE -- $930.0	COMEX SILVER -- MARCH FUTURE -- $1675.0
EXPECTED TRADING RANGE
GOLD APRIL 08   -- $912.0 -- $938.00	SILVER  MARCH 08  -- $1628.0 - $1740.00
COPPER AND CRUDE OIL -- EXPECTED TRADING RANGE
COPPER MARCH 08   -- $324.00 - $340.00	NYMEX CRUDE OIL   - $90.20.00 - $95.70
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GENERAL MARKET CONDITIONS
The IMF has reduced its global growth target for 2008 to 4.1% from 4.9% yesterday. The IMF has lowered China’s 2008 growth forecast to 10% from previously 11.40%. China is the biggest guzzler of base metals. The current base metals prices to a certain extent reflect slowdown in global growth. However if actual results come in lower than expected then expect another phase of hammering by the bears in base metals. Lower global growth in 2008 accompanied by higher prices of essential commodities implies greater investment interest in precious metals and soft commodities and less investment in equities. Gold will continue to rise with very high volatility.
Copper and other base metals shot up on expectations that Fed interest rate cuts will prevent the US economy from slowing down. Base metals have risen partly due to short covering and some long position building ahead of the Fed cut. Expect more gains in base metals today.
Traders prefer to go long in gold, silver and crude oil while they are going short on the US dollar before the Fed meeting. Apart from the 0.25%/0.50% interest rate cut, traders have started betting in the options markets on what will be the Fed funds rate towards the close of the year whether it will be 2.25% or 1.25%. After this week most of the interest rate sensitive risk will be over. It will be another volatile day, but gold and silver will find support at lower levels.
COPPER -- MARCH FUTURE -- INTRA DAY PIVOT: $327.0
Only a break of $338 will result in $347 and $360 in the short term. Initial support at $328.60
NYMEX CRUDE OIL --  FUTURE -- INTRA DAY PIVOT: $89.24
A break of $93.20 will result in $95 and more. On the lower side as long as $90.20 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 Wednesday, 30 January 2008 | Digg This Article | Source: GoldSeek.com

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