GENERAL MARKET CONDITIONS

There are a very few days when silver outperforms gold, yesterday was one of them. Silver, if it is able to hold on to current prices, should rise even faster than gold. We all know that silver rises as well as falls faster than gold. There are short positions at lower levels which are yet to be squared off. Some of the short traders have yet to square off in anticipation that comex march futures will close lower this month. However in the intermediate time if silver continues to rise, margin pressures will create short covering.

Gold and other precious metals will remain firm on lack of new sources of alternate investments (other than equities) and continued power woes in South Africa. Investment demand in precious metals will rise unless there is a stabilization factor in equities. Precious metals will remain delinked from the US dollar. However volatility will be high in precious metals as traders book profit at higher levels and new investors invest at lower levels.

SILVER -- MARCH FUTURE -- INTRA DAY PIVOT $1710.0

$1752 price target achieved. For the day if silver holds $1714 it will target $1790 and $1812. Silver has to fall below $1714 for $1688 and below.

COPPER -- MARCH FUTURE -- INTRA DAY PIVOT: $345.0

Copper has to hold $345.50 to target $364.80 and $381.50. For the week as long as copper holds $336 downside will be limited.

MCXARUN
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