-- Posted Tuesday, 29 April 2008 | Digg This Article | Source: GoldSeek.com

INSIGNIA CONSULTANTS
Asian Metals Market Update for 29th April, 2008
EXPECTED TRADING RANGE
COPPER AND CRUDE OIL -- EXPECTED TRADING RANGE
COPPER MAY 08   -- $382.00 - $396.00	NYMEX CRUDE OIL   - $116.20. - $121.20
GENERAL MARKET CONDITIONS
Saudi Arabia’s Public Investment Fund is in the “final stages” of launching the kingdom’s first sovereign wealth fund (SWF). The SWF would be set up with initial capital of SR20bn ($5.3bn). The amount of investment by Gulf cooperation council (GCC) countries will only rise and is an indirect way of moving away from the US dollar based investments. How much of the money in SWFs will move into gold remains to be seen. GCC counties official foreign exchange reserves will continue to swell as long term bullishness for crude oil prices is on the rise. The size of the GCC SWF will only rise over the coming years and will help to sustain the long term US dollar weakness story.
There is speculation that the Fed may cut interest rates this time and then shift the focus to inflation from growth. The net addition to US non farm payrolls is still negative and may remain in the negative territory for some time. The Fed may pause in June and then cut interest rates from September. Technically the US dollar has formed a short term bottom against the major currencies and should rise. The Fed meeting will be the key, till then day traders and jobbers will prefer to sit on the fence.
It will be a volatile day for gold, silver and copper. If they fail to rise then there will be sellers and key medium term technical support may be broken. On the other hand if they hold the last week low, then they may have bottomed out for the rest of the week.
GOLD -- JUNE FUTURE
Failure of gold to break and close over $931 on Friday will result in fall to $871 and $848.60 in May.
NYMEX CRUDE OIL --  FUTURE
Failure of crude oil to break $121.60 this week will result in a fall to $116.20 and $113.80 this 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 Tuesday, 29 April 2008 | Digg This Article | Source: GoldSeek.com

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