OUTLOOK

February gold closed sharply lower on Friday as it extended this week's decline. The low-range close sets the stage for a steady
to lower opening on Monday. Stochastics and the RSI are bearish signaling that sideways to lower prices are possible near-term.
If December extends this week's decline, November's low crossing at .780.40 is the next downside target. Closes above the 20-
day moving average crossing at 814.40 would confirm that a short-term low has been posted. First resistance is the 10-day
moving average crossing at 808.40 then the 20-day moving average crossing at 814.40. First support is today's low crossing at
785.00 then November's low crossing at 780.40.

December silver closed lower on Friday and below this month's low crossing at 13.980. The mid-range close sets the stage for a
steady opening on Monday. Stochastics and the RSI remain bearish signaling that sideways to lower prices are possible near-
term. If December renews this month's decline, the reaction low crossing at 13.325 is the next downside target. Closes above the
reaction high crossing at 15.155 are needed to confirm that a short-term low has been posted. First resistance is the 10-day
moving average crossing at 14.416 then the 20-day moving average crossing at 14.707. First support is today's low crossing at
13.760 then the reaction low crossing at 13.325.


January crude oil closed slightly lower on Friday as it extended this week's decline. A short covering rally tempered early losses
and the high-range close sets the stage for a steady to higher opening on Monday. Stochastics and the RSI remain bearish
signaling that sideways to lower prices are possible near-term. If January extends this week's decline, the 38% retracement level
of this fall's rally crossing at .8741 is the next downside target. Closes above the 10-day moving average crossing at 94.91
would temper the near-term bearish outlook. First resistance is the 25% retracement level crossing at 91.51. Second resistance is
the 20-day moving average crossing at 94.30. First support is Friday's low crossing at 88.52 then the 38% retracement level
crossing at .8741.

January Henry natural gas closed lower on Friday as it extended this week's decline below September's low crossing at 7.561.
The low-range close sets the stage for a steady to lower opening on Monday. Stochastics and the RSI are oversold but remain
bearish signaling that sideways to lower prices are possible near-term. If January extends this week's decline, weekly support
crossing at 6.801 is the next downside target. Closes above the 10-day moving average crossing at 7.776 would confirm that a
short-term low has been posted. First resistance is the 10-day moving average crossing at 7.776 then the 20-day moving average
crossing at 8.005. First support is today's low crossing at 7.276 then weekly support crossing at 6.801.

Technicals – MCX (Intra day calls)

CRUDE OIL (December) BULLISH ABOVE 3536BEARISH BELOW 3522

GOLD (February) BULLISH ABOVE 10158 BEARISH BELOW 10125

SILVER (March) BULLISH ABOVE 18930 BEARISH BELOW 18845
COPPER (February) BULLISH ABOVE 280.60 BEARISH BELOW279.80

LEAD (December) BULLISH ABOVE 121.75 BEARISH BELOW 121.40

NICKEL (December) BULLISH ABOVE 1095 BEARISH BELOW 1090

ZINC (December) BULLISH ABOVE 103.30 BEARISH BELOW 102.90

GENERAL MARKET CONDITIONS

Rise in London Inter bank Offered Rate (LIBOR) last week and a fall in energy and precious metals and gains in the US dollar once again reflects that in the short term global markets are nothing but driven by liquidity concerns. The big question in every trader is whether the Fed will cut interest rates even after December or will pause once and then start the interest rate cuts. Interest rate factor will dictate the markets in the first fortnight of December. In the first quarter of 2008 central bankers of G7 nations will have to fight inflation lower base effect. Crude oil had fallen to $50 a barrel in January this year. Lower base effect will result in higher inflation. Gains in crude oil prices have been greater than currency gains; therefore almost the central banks will have to choose between growth and inflation on their interest rate policy in the first quarter of 2008.

Gold and silver and other precious metals and base metals will be volatile as there are a number of central bank meetings till early next week. It will all depend on the future interest rate outlook of these central banks. Gold, crude oil and silver are medium term bullish and short term bearish, only if they are able to overcome short term resistances that there could be a short term technical breakout.

SILVER -- MARCH FUTURE

Silver has to hold $1376 and a daily close below the same will result in $1325. On the higher side only a break $1474 will result in short term bullish zone.

NYMEX CRUDE OIL -- FUTURE

Crude oil has to hold $86.32 to prevent a fall to $82. On the higher side only a break $92 will result in further gains.

mcx trend meter

Technicals – MCX (Intra day calls)

CRUDE OIL (December) BULLISH ABOVE 3652BEARISH BELOW 3638

GOLD (December) BULLISH ABOVE 10275 BEARISH BELOW 10240

SILVER (December) BULLISH ABOVE 18872 BEARISH BELOW 18790
COPPER (February) BULLISH ABOVE 273.90 BEARISH BELOW 273

LEAD (December) BULLISH ABOVE 120.30 BEARISH BELOW 119.90

NICKEL (December) BULLISH ABOVE 1102 BEARISH BELOW 1097

ZINC (December) BULLISH ABOVE 99.65 BEARISH BELOW 99.30

report

Gold and silver December futures are expiring today. The next maturity in gold and silver will be different. Investors will position themselves for the next expiry. In December, the Fed interest rate will be the key. A quarter of a percentage interest rate cut has been priced in by the markets. What if the Fed springs a surprise and cuts interest rates by half a percentage as a Christmas gift? All the metals and energies will zoom and the US dollar will nosedive. So far statistics on US economic growth have been on the lower side. Apart from the Fed meeting, the other key factors to watch out in December are energy prices and economic numbers from the Eurozone and UK. So far growth in Eurozone has shown resilience to a stronger currency and higher energy prices. If Eurozone growth falters in December, then expectations of an interest rate cut might rise which might boost the US dollar.

very long view gold

GOLD -- FEBRURAY FUTURE

As long as gold holds $774.20 downside will be limited and it will once again attempt to edge past $850. Only a daily close below $774.20 will result in $735.90 and $712.10.

long view for gold

GOLD
LIKELY TO TEST 11000 WITH ANY CLOSE ABOVE 10640 & 10700-775, ONLY CLOSE BELOW 10150/9875/9670 & 9300 BEARISH AGAIN FOR MEDIUM TERM