GENERAL MARKET CONDITIONS

Three things which so far has yet to happen in 2007, gold has yet to break $850, crude oil has yet to break $100 and euro/usd has yet to break 1.50. Gold and crude oil still have a chance to edge past these markets despite technical bearishness, while euro/usd over 1.50 in the next two weeks is highly unlikely. As far as metals markets are concerned, it is base metals which will be remembered than precious metals as they created historical highs in 2007 only to crash subsequently. It started off with copper, followed by nickel, zinc and lead. Fundamentally, I have never been a base metal bull and my reasoning is that if global growth is to slow down in 2008.

A slowdown in 2008 is getting factored in for base metal prices and when liquidity conditions improve (probably after the first fortnight of January, 2008) base metals will find buying interest. At the moment, in our view there are still huge longs in copper, zinc and lead at higher levels and retail investors are trying to average and get out of their investment in base metals. Once this is over, base metals will consolidate. Please remember that base metals are still way high over 2004 lows. So base metals are still in their multi-year bull cycle. Interest rate cuts by various central banks globally in the second half of 2008 should support base metals. US economy will grow very strongly in the second half of 2008 on lagging effects of interest rate cuts and a weaker currency while the European central bank should start their interest rate cuts after June 2008. Even the Indian central bank should cut interest rates by half a percent in 2008 as inflation falls below acceptable levels.

The volatility in the first fortnight of December, is just preparing traders for things to come in 2008. Day traders are having hell of time as higher volatility means more trading opportunities. Technically gold and silver are in a neutral to bearish zone while crude oil is in a neutral zone. Euro/usd has to break 1.4674 to be in bullish zone while failure to edge past this week will result in fall to 1.41. This is last trading week Christmas and trading volumes will fall from next week as some traders jet off for vacations.

GOLD -- FEBRURAY FUTURE

Double bottom has been formed at $776 and a double top at $818. Gold will trade in wider $790-$814 range for the day. A breakout is in the offing from the current trading range soon

NYMEX CRUDE OIL -- FUTURE

As long as crude oil holds $90-$90.40 downside will be limited and it will target $94-$95.50 once again. Falls below $90 then $87.40 is the target. Investor should sell April/May futures on rise with a price target of $78.

outlook

February gold closed sharply lower on Thursday and below the 10-day moving average crossing at 805.40 tempering the near-
term friendly outlook in the market. The low-range close sets the stage for a steady to lower opening on Friday. Stochastics and
the RSI remain bullish signaling that sideways to higher prices are possible near-term. If February extends this week's rally, the
reaction high crossing at 844.20 is the next upside target. Closes below November's low crossing at 780.40 would renew the
decline off last month's high while opening the door for a larger-degree decline into the end of the year. First resistance is
Wednesday's high crossing at 822.80 then the reaction high crossing at 844.20. First support is last Thursday's low crossing at
790.90 then last Monday's low crossing at 783.00.

March silver closed sharply lower on Thursday and below the 10-day moving average crossing at 14.521 signaling that a short-
term top has been posted. The low-range close sets the stage for a steady to lower opening on Friday. Stochastics and the RSI
are turning neutral hinting that sideways to lower prices are possible near-term. If March extends today's decline, the reaction
low crossing at 13.960 is the next downside target. Closes below this support level would renew the decline off November's low
thereby opening the door for a larger-degree decline this winter. First resistance is Tuesday's high crossing at 14.975 then the
reaction high crossing at 15.220. First support is today's low crossing at 14.100 then this month's low crossing at 13.960.

January crude oil closed lower on Thursday as it consolidated some of Wednesday's rally. The low-range close sets the stage for
a steady to lower opening on Friday. Stochastics and the RSI are bullish signaling that sideways to higher prices are possible
near-term. If January extends this week's rally, the reaction high crossing at .9768 is the next upside target. Closes below the
10-day moving average crossing at 89.67 would temper the near-term friendly outlook in the market. A close below last week's
low crossing at .8582 would renew the decline off November's high. First resistance is today's high crossing at 94.85. Second
resistance is the reaction high crossing at 97.68. First support is today's low crossing at 91.85 then the 10-day moving average
crossing at .8967.


January Henry natural gas closed lower on Thursday as it consolidated some of Wednesday's rally but remains above the 10-
day moving average crossing at 7.209. The low-range close sets the stage for a steady to lower opening on Friday. Stochastics
and the RSI are turning bullish signaling that sideways to higher prices are possible near-term. Closes above the 20-day moving
average crossing at 7.545 are needed to confirm that a short-term low has been posted. If January renews the decline off
November's high, weekly support crossing at 6.801 is the next downside target. First resistance is today's high crossing at
7.529 then the 20-day moving average crossing at 7.545. First support is Monday's low crossing at 6.950 then weekly support
crossing at 6.801.

intraday 14/12/07

GOLD
for the day sell only below 10160-150 S/L 10190 and T/p 10090-100 upto 10025-35/ sustain below 9950 bearish rally OR sell ard 10340-50 S/L 10360 and T/p 10300-272/10225 (any time close above 10430/10700-770 bullish while close below 10025/9950/9750/9420/9025 bearish for medium term)

SILVER
for the day sell only below 18650 & more below 18550 S/L 18775 and T/p 18400-300 days to come OR sell ard 18290-310 S/L 18350 and T/p 18175/18050 (any time close below 18550/18300/18100/17750/ 17050/16450 bearish rally while close above 19550/19975/20425/21325/23150 bullish for medium term)

CRUDE
for the day sell below 3615 S/L 3635 and T/p 3585-90/3540 OR sell ard 3710-20 S/L 3725 and T/p 3575-3640 (now crude need to close above 3735-80/ 3850/3915 for bullish while close below 3500/3400/3320/3190/3030 bearish for medium term)

COPPER
for the day sell only below 258 S/L 260.5 and T/p 255-54/252/bearish rally OR sell ard 268-269 S/L 269.5 and T/p 265.5-263.5 (upside strong rally only on close above 276/282/293/299/314/321.5/327/ 331.5/348 while close below 258/250/ 235 bearish for medium term)

LONG VIEW

COPPER
LIKELY TO TEST 250-52/246/242 UPTO 237 WITH ANY BREAK & CLOSE BELOW 258, WHILE CLOSE ABOVE 282/293 UPTREND AGAIN(FEB)

CRUDE OIL
LIKELY TO TEST 3350-25 WITH ANY CLOSE BELOW 3400 WHILE CLOSE ABOVE 3775/3915 UPTREND AGAIN
(DEC)

NICKEL
LIKELY TO TEST 970-75/940 UPTO 900 WITH ANY CLOSE
BELOW 1000(DEC)

OUT LOOK

February gold closed higher on Wednesday as it extends this week's rally above the 20-day moving average crossing at 806.80.
The high-range close sets the stage for a steady to higher opening on Thursday. Stochastics and the RSI remain bullish signaling
that sideways to higher prices are possible near-term. If February extends this week's rally, the reaction high crossing at 844.20
is the next upside target. Closes below November's low crossing at 780.40 would renew the decline off last month's high while
opening the door for a larger-degree decline into the end of the year. First resistance is today's high crossing at 822.80 then the
reaction high crossing at 844.20. First support is last Thursday's low crossing at 790.90 then last Monday's low crossing at
783.00.

March silver closed slightly lower on Wednesday as it consolidated some of Tuesday's rally but remains above the 20-day
moving average crossing at 14.618. The high-range close sets the stage for a steady to higher opening on Thursday. Stochastics
and the RSI remain bullish signaling that sideways to higher prices are possible near-term. If March extends this month's rally,
the reaction high crossing at 15.220 is the next upside target. First resistance is Tuesday's high crossing at 14.975 then the
reaction high crossing at 15.220. First support is Monday's low crossing at 14.500 then last Thursday's low crossing at 14.125.

January crude oil closed sharply higher on Wednesday and above the 20-day moving average crossing at 92.43 confirming that
a short-term low has been posted. The high-range close sets the stage for a steady to higher opening on Thursday. Stochastics
and the RSI have turned bullish signaling that sideways to higher prices are possible near-term. If January extends this week's
rally, the reaction high crossing at .9768 is the next upside target. A close below last week's low crossing at .8582 would renew
the decline off November's high. First resistance is today's high crossing at 947.24. Second resistance is the reaction high
crossing at 97.68. First support is the 20-day moving average crossing at 92.44 then the 10-day moving average crossing at
.8954.

January Henry natural gas closed higher on Wednesday and above the 10-day moving average crossing at 7.231 signaling that a
short-term low has been posted. The high-range close sets the stage for a steady to higher opening on Thursday. Stochastics and
the RSI are turning bullish signaling that sideways to higher prices are possible near-term. Closes above the 20-day moving
average crossing at 7.587 are needed to confirm that a short-term low has been posted. If January extends the decline off
November's high, weekly support crossing at 6.801 is the next downside target. First resistance is today's high crossing at
7.416 then the 20-day moving average crossing at 7.587. First support is Monday's low crossing at 6.950 then weekly support
crossing at 6.801.

GENERAL MARKET CONDITIONS

The expected surprise came a day after as the Fed, European Central Bank, Bank of England, Bank of Canada, and Swiss National Bank all released plans to provide extra liquidity to money markets, auctioning off loans with comparatively low interest rates to ease tension in global money markets. This is an acknowledgement that their economies are in tatter. Base metals and equities will benefit more out this move than precious metals and energies. Base metals have taken the maximum thrash due to year-end liquidity pressures and they should benefit most. The fall in base metals over the past two months suggests the quantum of speculative interest. Retail investors should learn a thing or two from the slide in base metals.

Nothing new to comment on precious metals and base metals as they are expected to remain firm on the back of a weaker US dollar and higher crude oil prices. Technical charts in precious metals and energies are yet to show bearish divergence. Higher gold prices will not result in lower demand.

GOLD -- FEBRURAY FUTURE

As long as gold holds $807-$809 it will target $825 and $838. Only a consolidated fall below $807 will result in $802 and $790.70.

SILVER -- MARCH FUTURE

Silver has to close over $1376 today to target $1512 and $1554. On the lower side as long as $1446 holds, downside will be limited.

OUT LOOK

February gold closed lower on Tuesday as it consolidates some of Monday's rally but remains above the 20-day moving
average crossing at 806.70. The mid-range close sets the stage for a steady opening on Wednesday. Stochastics and the RSI
remain neutral to bullish hinting that a double bottom with November's low appears to be forming. Monday's close above the
reaction high crossing at 813.00 confirms that a short-term low has been posted while opening the door for a possible test of the
reaction high crossing at 844.20 later this month. Closes below November's low crossing at 780.40 would renew the decline off
last month's high while opening the door for a larger-degree decline into the end of the year. First resistance is today's high
crossing at 819.30 then the reaction high crossing at 844.20. First support is last Thursday's low crossing at 790.90 then last
Monday's low crossing at 783.00.

March silver closed lower on Tuesday as it consolidated some of Monday's rally but remains above the 20-day moving average
crossing at 14.633. The low-range close sets the stage for a steady to lower opening on Wednesday. Stochastics and the RSI
remain bullish signaling that sideways to higher prices are possible near-term. If March extends this month's rally, the reaction
high crossing at 15.220 is the next upside target. First resistance is today's high crossing at 14.975 then the reaction high
crossing at 15.220. First support is Monday's low crossing at 14.500 then last Thursday's low crossing at 14.125.

January crude oil closed higher on Tuesday as it extends last week's trading range but closed above the 10-day moving average
crossing at 89.22. The high-range close sets the stage for a steady to higher opening on Wednesday. Stochastics and the RSI are
turning neutral to bullish signaling that a low might be in or is near. Closes above the 20-day moving average crossing at 92.39
are needed to confirm that a short-term low has been posted. If January extends the decline off November's high, the 50%
retracement level of this fall's rally crossing at .8374 is the next downside target. First resistance is last Thursday's high
crossing at 90.73. Second resistance is the 25% retracement level crossing at 91.51. First support is the 38% retracement level
crossing at 87.41 then last Thursday's low crossing at .85.82.

anuary Henry natural gas closed higher on Tuesday as it consolidated some of Monday's decline. The mid-range close sets the
stage for a steady opening on Wednesday. Stochastics and the RSI are oversold but remain neutral to bearish signaling that
sideways to lower prices are possible near-term. If January extends the decline off November's high, weekly support crossing at
6.801 is the next downside target. Closes above the 20-day moving average crossing at 7.628 would confirm that a short-term
low has been posted. First resistance is the 10-day moving average crossing at 7.239 then the 20-day moving average crossing
at 7.628. First support is Monday's low crossing at 6.950 then weekly support crossing at 6.801.