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Daily Newsletter Newsletter-Commodity 06/12/2010

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MARKET WRAP U.S. oil prices rose to a 25-month high on Friday Gold rises above $1,400 on dollar drop U.S. non-farm payrolls disappoint Silver tracked gold higher, trading up 2.7 percent Copper ends firm despite soft U.S. employment data

U.S. oil prices rose to a 25-month high on Friday, the third straight rise, as a weaker U.S. dollar spurred commodities investment and cold weather in Europe . Gold rose almost 2 percent on Friday, rising above $1,400 an ounce as the dollar tumbled after disappointing jobs data cast doubt on the strength of the U.S. economic recovery. COMEX gold and silver volume was sharply lower than their 30-day average, as investors have completed contract rollover prior to December's first notice day on Tuesday. Copper notched its biggest weekly gain in four months on Friday, ending firm despite below-forecast U.S. employment data that failed to deter demand for the metal as a hedge against inflation. Investor confidence was shaken after data showed U.S. employment increased far less than expected in November and the jobless rate jumped to a seven-month high of 9.8 percent.

ECONOMIC CALENDAR Date

Time

Currency

Economic Data

Forecast Previous

Mon Dec 6

5:30am

USD

Fed Chairman Bernanke Speaks

6th-7th

GBP

Halifax HPI m/m

0.3%

1.8%

3:00pm

EUR

Sentix Investor Confidence

13.8

14.0

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TECHNICAL VIEW GOLD(FEB) Trend Strategy

• Bullish • Buy on dips

SILVER(MAR MAR) Trend Strategy

• Bullish • Buy on dips

Resistance

• R2 -21120 • R1 -20850

Resistance

• R2 - 45650 • R1 - 44750

support

• S1 -20570 • S2 -20250

support

• S1 - 43680 • S2 - 42750

COPPER(FEB) Trend Strategy

• Consolidate • Buy on dips

CRUDE(DEC)) Trend Strategy

• Bullish • Buy on dips

Resistance

• R2 - 411 • R1 - 403

Resistance

• R2 - 4150 • R1 - 4070

support

• S1 - 394 • S2 - 387

support

• S1 - 3970 • S2 - 3890

NATURALGAS(DEC) Trend Strategy

• Consolidate • Sell on high

LEAD(DEC)) Trend Strategy

• Consolidate • Buy on dips

Resistance

•R2 - 207 •R1 - 198

Resistance

• R2 - 110.5 • R1 - 107.2

support

•S1 - 189 •S2 - 181

support

• S1 - 104.3 •S2 - 101.5

ZINC(DEC) Trend Strategy

• Consolidate • Sell on high

NICKEL(DEC) NICKEL(DEC Trend Strategy

• Consolidate • Sell on high

Resistance

•R2 - 105.8 •R1 - 102.5

Resistance

•R2 - 1107 •R1 - 1083

support

•S1 - 99.7 •S2 - 96.8

support

•S1 - 1053 •S2 - 1025

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ALUMINIUM(DEC) Trend Strategy

• Consolidate • Buy on dips

Resistance

•R2 - 108.5 •R1 - 106.2

support

•S1 - 104.0 •S2 - 101.7

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