-- Posted Thursday, 31 January 2008 | Digg This Article | Source: GoldSeek.com

Asian Metals Market Update for 31st January, 2008
GOLD	SILVER
COMEX GOLD APRIL FUTURE -- $927.40	COMEX SILVER -- MARCH FUTURE -- $1683.0
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   - $89.20.00 - $93.20
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GENERAL MARKET CONDITIONS
Gold has had a great January courtesy of the Fed interest rate cuts of 1.25%. In January gold has taken hours to fall and a few minutes to rise and pare up all the losses on any day. The big question which I am being asked is whether gold will continue to rise and not stop before $1200 in the next three months. Will there be a correction or a consolidation phase and then rise? Gold is no doubt bullish in the short term as well as the medium term. But it may not rise at $20-$30 a day as has happened many a days in January.  Interest rate cuts take time to trickle down and have a positive effect on the common man. The current Fed interest rate cut will take three months to four months before the US economy shows greater employment and growth which will get factored in next month. Spot gold can rise to $980-$1000 in the short term if momentum continues and thereafter a fall to $880 and below before the next rise to $1200.
In the months of February and March if US economic numbers beat market expectations then gold could fall as it will reflect that Fed acted in haste just to protect equities from a slide. If such a scenario happens that gold will fall, the US dollar can gain and crude oil and base metals will rise. If something similar happens then only gold will reverse its bull run or else sharp dips should be used as an investment opportunity.
According to the FOMC statement, the Fed is still worried about financial market conditions, tight credit, the stability of the labor market and a further contraction in housing.  Although they believe that their recent efforts will offset some of the downside risks to growth, the tone of the FOMC statement indicates that this rate cut will not be their last. In our view the Fed will continue with its quarter point easing till the third quarter and then stop. However other central banks namely the ECB and Bank of England will also cut rates.
GOLD -- APRIL FUTURE -- INTRA DAY PIVOT:$922.0
Gold targets $938, $949 today as long as $917 holds. A fall below $917 will result in $907 and $900.00
NYMEX CRUDE OIL --  FUTURE -- INTRA DAY PIVOT: $89.54
Crude oil has to hold $89.54 on closing basis to prevent a fall to $88.10 and $86.80. Resistance at $92.60 and key resistance at $94.14.0
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, 31 January 2008 | Digg This Article | Source: GoldSeek.com

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