GENERAL MARKET CONDITIONS

There was some mild profit taking in gold and silver while crude oil once again consolidates between $90-$100 a barrel. Base metals are caught between a fight between bulls and bears. Bulls are the one who expect the US economy may not move into recession while the reverse for the bears. There is a tug-o-war going on in base metals. Technical picture for all base metals is neutral to marginally bullish. As far as gold and silver are concerned there are in a consolidation phase before the next leg higher. There are more buyers at lower levels than sellers. Those who are short have started to exit their short positions.

Markets will be looking forward to the bank of England and the European central bank (ECB) meeting today. Interest rates are expected to be unchanged by both banks but the Bank of England is expected to cut interest rates in a future meeting while ECB may raise interest rates if inflation rises further. Day traders can buy gold and silver on dips using higher stop losses. Long term investors should wait for a mild correction and then invest.

GOLD -- FEBRURAY FUTURE -- INTRA DAY PIVOT:$872.0

Gold may consolidated between a $870-$900 range for a few days before the next leg higher if the rally is to continue. In the short term as long as holds holds $851 it will target $938.

NYMEX CRUDE OIL -- FUTURE -- INTRA DAY PIVOT: $102.0

Failure of crude oil to break $102 will result in a fall to $92 and $88. A consolidated break of $102 will result in $112.0

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