GENERAL MARKET CONDITIONS

A happy 2008 to all of you. All the hype at the moment is on gold and not on silver as far as precious metals are concerned. Over the last eighteen months silver got bogged down due to over hype. In 2008, silver is not over hyped and as a result it should find more investment demand as well as speculative interest. Silver will not be affected by losses in base metals in 2008. Silver should outperform gold in 2008. Gold is getting support from geopolitical risk. The difference between 2007 and 2008 will be geopolitical risk. In 2007 geopolitical risk was virtually zero which will not be the case in 2008. Geopolitical risk will only add to the volatility in the precious metals market.

For the rest of the week, all eyes will be on the US dollar. Markets have factored in a quarter of a percentage interest rate cut by the Fed this month. Gold and silver closing on Friday will set the direction for the rest of January. Technically gold and silver are bullish.

Gold needs to break $854 for gains to $880. On the lower side as long as $830 and 819 holds downside will be limited.

SILVER -- MARCH FUTURE -- INTRA DAY PIVOT $1482.0

As long as silver holds $1456 it will target $1557 and $1627.0

COPPER -- MARCH FUTURE -- INTRA DAY PIVOT: $307

Copper has to hold $303.20 on closing basis to be in the bullish zone and target $317 and $322. A consolidated fall below $303.20 will result in $292 and $286

MCXARUN
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