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-- Posted Tuesday, 22 April 2008 | Digg This Article | Source: GoldSeek.com

INSIGNIA CONSULTANTS
Asian Metals Market Update for 22nd April, 2008
GOLD	SILVER
COMEX GOLD JUNE FUTURE -- $919.0	COMEX SILVER -- MAY FUTURE -- $1745.0
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
Last Monday also gold and silver fell only to pare all the losses. Will last week repeat itself this week? All will depend on the US housing numbers today. If they come in lower than market expectation there will be another round of US dollar selling before the Fed meeting next week. Technically the euro/usd is bullish over 1.5690 and as long as it holds the euro still has a chance of breaking 1.60 in the short term. It’s better to remain on the sidelines as far as the US dollar is concerned.
Precious and base metals have been delinked from energy prices.  Zinc and Lead are taking a beating. Copper is the key driver of the base metals over the past few years. If copper rises other base metals follow it and vice versa. (Except Tin which continues to rise to record highs every day). The short term trend for copper is neutral to bullish. In the medium term to long term what happens if copper falls twenty percent from the current prices? Will zinc prices also fall the same? Zinc, at lower prices, the risk to return ratio shifts in favour of the buyer. LME Lead is still above the 52 week low. I do not expect LME lead to test 52 week low of $1951 in the short term. Base metals will be volatile for the rest of April. MCX April futures in all base metals will expire next week. We expect spreads to widen before close.
COPPER -- MAY FUTURE -- INTRA DAY PIVOT: $404.0
Copper has to break $396-$400 today else it will fall to $378 and $368.
NYMEX CRUDE OIL --  FUTURE -- INTRA DAY PIVOT: $112.20
$117.60 price target achieved. Crude oil targets $119.60 and $121.10 as long as $114.40 and $112.60 holds.
INDIAN RUPEE (USD/INR)
The Rupee will trade in a wider 39.77-40.08 range. A break away from this range will happen shortly. The government is focused on managing inflation so that interest rate measures to control inflation are removed. After Infosys and Wipro, TCS numbers have disappointed. The Indian technology sector will see a mid cycle slowdown. Exports of food grains and other essential items are being banned. The lagging effect in the form of lower export receivables will be negative for the rupee over the coming months. Higher interest rate cost along with rising cost of inputs has sounded as a death knell for the tiny scale exporters which use labor intensive techniques. Unless Indian stock markets have a sustained rise, the medium term downside for the rupee will be limited to 38.50 with a strong possibility of 42.00 and 43.00 in the last quarter of 2008. Forward premiums rose reacting to the CRR rate hike and will remain firm.
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 Tuesday, 22 April 2008 | Digg This Article | Source: GoldSeek.com

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