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-- Posted Friday, 15 February 2008 | Digg This Article | Source: GoldSeek.com

INSIGNIA CONSULTANTS
Asian Metals Market Update for 15th February, 2008
GOLD				SILVER
COMEX GOLD APRIL FUTURE -- $913.40				COMEX SILVER -- MARCH FUTURE -- $1733.50
	Lower	Expected	Higher		Lower	Expected	Higher
BUY	888.30	907.10	926.00	BUY	1652.00	1714.00	1754.00
SELL	897.20	920.30	936.30	SELL	1688.00	1752.00	1780.00
EXPECTED TRADING RANGE
GOLD APRIL 08   -- $893.0 -- $922.00				SILVER  MARCH 08  -- $1688.0 - $1770.00
COPPER AND CRUDE OIL -- EXPECTED TRADING RANGE
COPPER MARCH 08   -- $336.00 - $360.00				NYMEX CRUDE OIL   - $92.60.00 - $98.50
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GENERAL MARKET CONDITIONS
The Fed chairman Ben Bernanke has lowered the growth forecast for the US economy and the Fed will continue to lower interest rates to stimulate growth. The fed may soon start following zero interest rate policy till the US economy does not pick. There is some speculation that the Fed may cut interest rates before even the next meeting in March if there is further evidence of deterioration in US economy. Interest rate cuts are always bullish for gold and negative for equities as they reflect the health of the economy. The fed may alter the softer interest rate bias in the last quarter of 2008 as inflation creeps and lagging effects of interest rate cuts show a positive effect on US economy.
Long term investors are buying more US dollars call options as they expect the US dollar to gain sharply towards the close of the year. The European central bank and other central banks may also start cutting interest rates if their economies start to slowdown. This will reduce the interest rate differentials and will be positive for the US dollar. Gold will be affected marginally by gains in the US dollar. Geopolitical risk is there. There is a harsh exchange of words between US and Russia as Russia objects to break out Russian nations joining NATO. The Iran nuclear issue is not down and out. It can creep up anytime. These factors will prevent gold from a major collapse in 2008.
Base metals fell after the Fed lowered its growth forecast. As far as copper and lead is concerned, it is more of a technical correction which if it continues could start the beginning of a bear rally. Zinc and Nickel are bearish and have to rise four to five percent to attract short term hot money. Base metals will remain volatile next week. Pit trading is closed on Monday. It will be electronic time and closure of pit trading will have a negligent effect on metal and energy price movement. Trading volumes will comedown slightly on Monday along with greater volatility. Unless silver falls sharply today traders will prefer to go long on Monday in silver. Gold remains on the sidelines as it is in a neutral to slightly bullish zone.
GOLD -- APRIL FUTURE -- INTRA DAY PIVOT:$920.30
Gold has to break $924.80 for $932, $938. On the lower side as long as $905, $898.50 holds downside will be limited. Gold has to fall below $898.50 for more losses.
NYMEX CRUDE OIL --  FUTURE -- INTRA DAY PIVOT: $93.60
Back to $92-$98 range. Needs to break $98-$101 zone for gains else it will trade in $93-$98 range for the day.
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 Friday, 15 February 2008 | Digg This Article | Source: GoldSeek.com

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