-- Posted Wednesday, 30 April 2008 | Digg This Article | Source: GoldSeek.com

INSIGNIA CONSULTANTS
Asian Metals Market Update for 30th April, 2008
EXPECTED TRADING RANGE
GOLD JUNE 08   -- $850.0 -- $905.00	SILVER  MAY 08  -- $1610.0 - $1760.00
COPPER AND CRUDE OIL -- EXPECTED TRADING RANGE
COPPER MAY 08   -- $382.00 - $396.00	NYMEX CRUDE OIL   - $113.20. - $121.20
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
It’s all on the Fed meeting for precious metals and energies. Interest rate expectation has been factored in by the markets. If the Fed wants a stronger US dollar they will signal an interest rate pause. If they want a weaker US dollar they will be hawkish or may not signal an end to the interest rate cuts. A weaker US dollar has boosted the US manufacturing sector in 2008. Job losses in the US are mainly in the financial services sector while the manufacturing sector adds to jobs.
Copper is expected to remain firm as output from Mexico’s Cananea copper plant has been delayed indefinitely. Strikes in Chile are already continuing. Copper is expected to remain firm and maybe even test new highs. The only negative factor for copper will be liquidation of long positions by fund managers or a technical breakdown. Zinc and Lead have been trading with a softer bias. Zinc and lead should break out from the current trading range sooner. LME zinc (3 month) has to break $2411 till then it will find sellers at higher prices. LME Lead (3 months) has to break $2833 to attract short term investors. Retail investors are long in base metals (in our view). At lower prices in zinc and lead the risk to return ratio moves in favor of the buyer.
COPPER -- JULY FUTURE -- INTRA DAY PIVOT: $404.0
Copper will break the $380-$404 wider trading range soon. Inability to edge higher will result in profit taking to $365 and below. LME copper (3 months) has to break $8700-8900 zone else fall to $8058.
NYMEX CRUDE OIL
$116.20 price target achieved. A close below $116.20 on Friday will result in $109.60 next week. Key resistance $121.40.
INDIAN RUPEE (USD/INR)
The Rupee weakened to 40.49 against the US dollar yesterday. US dollar demand from state run banks (possibly due to defense related payment) and also demand from a large private sector bank. This demand is not yet over which can result in the rupee opening higher around 40.65. As and when this demand gets over the rupee will once again get stronger. Technically the rupee has to break the 40.82-40.88 zone till then it will find sellers at higher levels. Failure of the rupee to break 40.88 by next week will result in a fall back to 39.90.  RBI left interest rate unchanged and instead increased the cash reserve ratio (CRR) in its annual policy meeting. This is just an inflation controlling move and nothing else.
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, 30 April 2008 | Digg This Article | Source: GoldSeek.com

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