GENERAL MARKET CONDITIONS

Technical break out, thin market conditions, a weaker US dollar and stronger crude oil prices resulted in gold and silver edging higher. Crude oil has risen on expectations that US weekly crude oil inventories will fall. If crude oil inventories fall sharply then it can easily edge past $100. There is lack of major market moving news, volumes are low and even a small short covering results in prices rising.

Crude oil got support from the ongoing war between Turkey and Kurdish rebels in Northern Iraq. Unless geopolitical tensions ease crude oil will continue to rise. Higher crude oil prices and higher gold prices is more of a US dollar collapse story which will continue in the first quarter of 2008. The key question will be what will be top in crude oil, if it breaks and floats over $100.

Technical picture in gold, silver and crude oil is bullish. However they could fall, without altering the bullish trend as and when there is profit taking.

GOLD -- FEBRURAY FUTURE -- INTRA DAY PIVOT:$823

Gold targets $848 and $888 in short term as long as it floats over $812. Gold has to close below $812 to be in bearish zone.

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