GENERAL MARKET CONDITIONS

If gold rises $36 in less than five hours, it can easily cross $1500 in 2008 and $2000 in 2009. Mr. Bernanke had said nothing new on the Fed's intention to cut interest rates by more than a quarter of percentage on the Fed meeting. A fifty basis point cut by the Fed was already factored in by the markets. The European central bank will not cut interest rates as long as inflation is high in the Eurozone. It was not a surprise for me. Gold is bullish no doubt, but I am not convinced with the pace of rise. The faster the speed of the rise of gold, the higher will be the correction with the successive lower base getting higher.

Silver is undervalued and should get more investment interest. It's all about future incremental returns. Silver despite being volatile, offers greater scope for rise than gold. Gold is benefiting from more numbers of exchange traded funds (ETF) than silver. Once silver offers more investment avenues, it will rise faster than gold.

Weekend is coming and considering yesterdays rise. Traders will either square off or go long on dips. Day traders better to remain on the sidelines and use sharp dips to go long.

SILVER -- MARCH FUTURE -- INTRA DAY PIVOT $1637

Silver targets $1665 and $1728 as long as $1558 holds.

COPPER -- MARCH FUTURE -- INTRA DAY PIVOT: $338.70

Copper needs to break $338 else it will consolidate in $316-$338 wider range.

NYMEX CRUDE OIL -- FUTURE -- INTRA DAY PIVOT: $92.0

$92-$97 wider range to continue. There are more buyers on dips than sellers.

MCXARUN
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