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-- Posted Wednesday, 6 February 2008 | Digg This Article | Source: GoldSeek.com

INSIGNIA CONSULTANTS
Asian Metals Market Update for 6th February, 2008
GOLD	SILVER
COMEX GOLD APRIL FUTURE -- $892.0	COMEX SILVER -- MARCH FUTURE -- $1642.0
EXPECTED TRADING RANGE
GOLD APRIL 08   -- $883.0 -- $912.00	SILVER  MARCH 08  -- $1610.0 - $1690.00
COPPER AND CRUDE OIL -- EXPECTED TRADING RANGE
COPPER MARCH 08   -- $311.00 - $330.00	NYMEX CRUDE OIL   - $86.20.00 - $92.20
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GENERAL MARKET CONDITIONS
The US economy is in deep trouble for the labor market, housing market and now the service sector, it certainly feels a recession has hit. Service sector ISM caught the market completely by surprise as it fell to the lowest level in seven years. In the month of January, the service sector contracted for the first time in four years. The manufacturing service is actually now doing better than the service sector. It is the manufacturing growth which is the precursor to the growth in services sector. If US manufacturing continues to rise, service sector growth will pick up faster. However the financial services sector will take time to pick up as banks and other institutions do not distribute money freely.
Investors in the US must by now have realized the need for greater savings. I have always believed that “Savings is the best for of investment” and the US economy should see an increase in the savings rate in 2008 and also in the coming years. The US dollar’s status will not be the same. Central banks will continue to diversify away from the US dollar and will follow the preamble of investment of not keeping all eggs in one basket. Traders and investors must now have realized the need to invest in hard assets such as precious metals as equities is nothing but paper. However Gold will be volatile and will be vulnerable to liquidity swings.
Base metals can fall further. In my view there are more long positions than short positions. If base metals fall in a big way, some of the long will get converted into shorts. China is closed from tomorrow till the 13th February due to Chinese New Year celebrations. Base metals demand should rise after China opens. One should wait for more correction and invest in small quantities in base metals using higher stop losses. Gold and silver will be volatile and dictated by the US dollar and crude oil prices.
GOLD -- APRIL FUTURE -- INTRA DAY PIVOT:$898.0
Gold has to break $894 and $888 else it will fall to $883 and $872. Only a break of $904 will result in $909 and $916.0
COPPER -- MARCH FUTURE -- INTRA DAY PIVOT: $311.0
Failure of copper to break $337-$339 zone in February will result in a fall to $300 and $285.
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, 6 February 2008 | Digg This Article | Source: GoldSeek.com

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