Sunday, November 05, 2006

A thrashing due once again............

Gold and silver are again due for good thrashing. We could see a rise till early tommorow and then a fall. This fall should be there technically as well as politically taking for granted that Bush gets favourable results in the coming polls.

Gold could come up to the $637-642 range from where we should see a correction of a minimum 5% - 8%.(Five percent technically and eight percent under pressure. The exact path of Gold is yet unclear to retail investors. The uncertainity looms ahead albeit with a very firm bias in mind and that is what is making the Gold vulnerable. Gold at the moment is also not following Crude oil as it generally does which is further creating uncertainity as to buy crude on the basis of higher gold prices or sell gold on the basis of lower crude prices.All in all the Dollar should gain after the elections at least for a few days after which everything should take its natural course i.e. the course prepared by big players and fund managers put together.

Silver is a very very BULLISH metal as I have been saying earlier "IF YOU ARE A BULL BUY SILBER IF YOU ARE A BEAR SELL GOLD" Bit silver also should generally follow gold and dollar at least for direction albeit at a lower pace. We have known this metal to srprise us as well as surpass all our expectations. So sit tight on longs and do not worry as it has very good industrial demand.

TRADING TIP: SELL GOLD BETWEN $637-640 WITH STOP LOSS ABOVE $648

SELL SILVER BETWEN $12.78-$12.85 WIH STOP LOSS ABOVE $13.06.

COPPER ON THE WHOLE IN THE LONG TERM IS NOT THAT BULLISH WITH CHINESE DEMAND SLOWING .