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-- Posted Thursday, 5 June 2008 | Digg This Article | Source: GoldSeek.com

INSIGNIA CONSULTANTS
Asian Metals Market Update for 5th June, 2008
EXPECTED TRADING RANGE
COPPER AND CRUDE OIL -- EXPECTED TRADING RANGE
COPPER JULY 08   -- $347.00 - $368.00	NYMEX CRUDE OIL   - $118.17. - $125.40
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GENERAL MARKET CONDITIONS
The Indian government raised petrol, diesel and LPG prices yesterday. The rise in oil prices will not prevent Indian crude oil demand from falling as higher incomes offset the rise in prices. It will result in a rise in inflation and add duty cuts and it will result in an increase in the fiscal deficit. Last week the Indian government had announced a series of measures to increase the inflow of US dollars into India including a five fold increase in the limit for external commercial borrowings, with the non resident Indian being able to register themselves a foreign institutional investor, etc. The prime reason is to increase short term investment flows into India in an adverse global macro economic environment. This will reduce the pace of the decline of the Indian rupee against the US dollar.
It’s a catch twenty two situation for the Indian government as over the eleven months there are numerous state elections and also the general election in India. On one hand a rise in oil and LPG prices does not go down well with the masses. On the other hand any delay in raising prices would mean short term happiness for the masses but long term pain for the masses as well as the country as a whole. If crude oil prices fall in the last quarter (which in my view they should fall) the Indian government will cut petrol prices before the key state elections and general elections and make voters happy once again. Indian inflation will remain firm due to lower base effect.
Markets will be looking forward to the European central bank meeting and bank of England meeting today and US May payroll numbers tomorrow for direction. Till then it will be a technical trade.
GOLD -- AUGUST FUTURE -- INTRA DAY PIVOT:$888.0
As long as gold holds $869-$974 zone gold will target $899 and $910. Only a fall below $869 will result in $850. Initial resistance at $894.10.
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.
Nothing in this article is, or should be construed as, investment advice.

-- Posted Thursday, 5 June 2008 | Digg This Article | Source: GoldSeek.com

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