Futures : Metals Update

After the massive sell-offs in Gold and Silver market finally halted its decline yesterday and corrected slightly, as both metals both look a bit overcooked there should be some room for corrections to the upside.

Feb Gold found supports above the $600 print where buyers once again entered the markets looking to offset at 618 area ( former supports level) on a short term notice.

A temporarily weakening of the USD should offer supports to higher gold.

Silver shows somewhat the same pattern as Gold where correlative levels in the March contracts would be 12,10 supports 12,57 resistance..

Silver correlations to Gold and the USD is of course vital but there is another factor to add in as well, Copper. the copper market has deteriorated significantly past three weeks as demand ( and outlook 2007) for the industrial metal predominantly from China, is declining..

However, current price levels at 253 cents/lb compared to 330 in early December is far more attractive to bullion buyers and should bring back Copper buyers to the market, at least for now, correcting levels to 280 cents/lb resistance area.