Latest Headlines

Search

-- Posted Monday, 21 April 2008 | Digg This Article | Source: GoldSeek.com

INSIGNIA CONSULTANTS
Asian Metals Market Update for 21st April, 2008
EXPECTED TRADING RANGE
COPPER AND CRUDE OIL -- EXPECTED TRADING RANGE
COPPER MAY 08   -- $382.00 - $404.00	NYMEX CRUDE OIL   - $112.70. - $120.20
This is just an excerpt of the main report. To receive a copy of the full report mail a request to sms@insigniaindia.com
GENERAL MARKET CONDITIONS
For the past three weeks momentum trading in metals and energies has been backed by technical trade. We cannot ignore the technical factors. Last week rose to $956 and subsequently fell to $908.0. This fall will not go down well with the day traders and investors.  Silver has been volatile and there is nothing official about it. Historically volatility in silver has always increased in the months of April and May. Copper is being driven by greater investment demand and strike related news at codelco mines.
28th/29th April, Fed will is expected to cut interest rates between 0.25% to 0.50%. The next Fed meeting will be on 30th meeting. (Unless there is an inter meeting). Traders and investors will have two months to gobble all the economic numbers and corporate profitability numbers before the next Fed meeting.  In the first four months of 2008, the US dollar has been ripped apart. US dollars seems like an untouchable currency at the moment. Other central banks (Europe and England) may not cut interest rates due to policy divergence of controlling inflation. We expect the US dollar to bottom out before the June fed meeting. An interest rate cut by the Fed will be detrimental to the greenback. We have a contrarian view on the US dollar and we expect the US dollar to gain before the June meeting. There will be some more US dollar weakness in May. However if US equities stabilize quickly the US dollar will gain earlier than market expectation. A stronger US dollar is always negative for gold, energies, silver and other metals. However physical demand will rise at lower prices unless there is a short term bear phase in metals.
GOLD -- JUNE FUTURE
Back to square one. Gold has to break the $950-$960 zone else gold will trade in wider range of $900-$960 range.
COPPER -- MAY FUTURE
For the rest of April as long as copper holds the $377-$380 zone on closing basis it will continue to try and break the $404-$407 zone for $425.
INDIAN RUPEE (USD/INR)
The reserve bank of India (RBI) increasing cash reserve ratio (CRR) rates by half a percentage will not have any impact on the Indian rupee or the Indian stock markets. Markets will be looking forward to the RBI annual policy meeting next week and its views on the Indian economy. We do not expect any increase in the repo rates, reverse repo rates or interest rate hike by the RBI next week. Any hike will be a short term negative for the Indian economy and the UPA government is on election stand by mode. Intra day 39.78 is the key support while 40.08 is the key resistance and a break of either of them will set the direction for the rest of the week.
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 Monday, 21 April 2008 | Digg This Article | Source: GoldSeek.com

1080-81, Ugger Sen Street,”Somani Bhawan”
Sita Ram Bazar, New Delhi-110006. India.
Ph: [O] 91-11-30919880 [M] 09811139549
Website: www.insigniaindia.com
Email: chintan@insigniaindia.com

Previous Articles by Chintan Karnani, Insignia Consultants

© 1995 - 2008

Disclaimer