GENERAL MARKET CONDITIONS

It’s a technical trade in all metals and energies in the absence of major market moving news. Gold and silver will continue to find buyers at lower levels unless there is a short term technical breakdown. Some of the retail investors who are stuck at higher levels will average out at lower levels. For the rest of the week gold will consolidate before the next move. Physical demand is still not there in India. Investment demand will continue to dictate gold and silver. Based metals will find buyers at lower levels as markets prepare for greater Chinese demand after the Chinese New Year celebrations are over.

President George W. Bush’s $3.1 trillion federal budget that trims Medicare and health care programs and boosts military spending projects the deficit this year and next will hit near-record levels. If the spending does not reverse the growth rates of the US economy, the US dollar could again nosedive. This is an election year in the US and all the politicians in the US try to ensure that a temporary feel good factor is there among the voters.

GOLD -- APRIL FUTURE -- INTRA DAY PIVOT:$919.0

Gold has to break $919 for gains else it will trade in $895-$919 wider range.

NYMEX CRUDE OIL -- FUTURE -- INTRA DAY PIVOT: $89.54

In the short term as long as crude oil holds $85 it will target $95 and $102+. Crude oil has to fall below $85 for further gains.

MCXARUN
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