GENERAL MARKET CONDITIONS

Copper continues to shine bright. LME inventories have been continuously falling. Expectations that China will need more copper and aluminum to repair the damaged infrastructure (ahead of the Olympics games) has resulted in greater investment interest. Copper will remain firm and could reach record highs if global inventories continue to fall and the Chinese buy at higher levels. The only negative factor for copper is reduced demand and Chinese copper supplies resuming normal operations. Higher copper prices will prevent silver and other base metals from a fall.

Gold and silver are in a consolidation phase and should break out from the current wider trading range soon. The technical picture is still bullish; however failure to break recent highs in the near term will result in a correction. A continuous rise in platinum prices and South African power woes will prevent gold from a collapse in the short term. At higher levels physical demand is virtually non existent.

SILVER -- MARCH FUTURE -- INTRA DAY PIVOT $1752.0

Silver has to break $1752 and $1770 else it will trade in $1692-$1760 wider range. Consolidated fall below $1692 will result in $1652.

COPPER -- MARCH FUTURE -- INTRA DAY PIVOT: $357.0

$368-$382 is the technical congestion zone. Failure to break $382 this month will result in fall to $336 and below.

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