GENERAL MARKET CONDITIONS

The expected surprise came a day after as the Fed, European Central Bank, Bank of England, Bank of Canada, and Swiss National Bank all released plans to provide extra liquidity to money markets, auctioning off loans with comparatively low interest rates to ease tension in global money markets. This is an acknowledgement that their economies are in tatter. Base metals and equities will benefit more out this move than precious metals and energies. Base metals have taken the maximum thrash due to year-end liquidity pressures and they should benefit most. The fall in base metals over the past two months suggests the quantum of speculative interest. Retail investors should learn a thing or two from the slide in base metals.

Nothing new to comment on precious metals and base metals as they are expected to remain firm on the back of a weaker US dollar and higher crude oil prices. Technical charts in precious metals and energies are yet to show bearish divergence. Higher gold prices will not result in lower demand.

GOLD -- FEBRURAY FUTURE

As long as gold holds $807-$809 it will target $825 and $838. Only a consolidated fall below $807 will result in $802 and $790.70.

SILVER -- MARCH FUTURE

Silver has to close over $1376 today to target $1512 and $1554. On the lower side as long as $1446 holds, downside will be limited.