'Price Is Good, Market Is Good' – Crude oil surge on Saudi Arabia comments.

As expected,Y'day crude prices traded above $62.while OPEC decided to keep production unchanged again at the meeting today. The decision was made based on the organization's expectation that global oil demand will recover towards the end of the year and According to Saudi's oil minister, 'market is in good shape' and 'prices are good'.

As Saudi Arabia oil minister commented that global economy is coping with Oil price -75-80 bbl .However the comment disagreed by the IEA which said that oil price would be underpinned to economic recovery.

US' existing home sales surprisingly rose +2.85% mom to 4.68M units in April, compared with market expectation of +1.8% and -3% a month ago

Gold price trades lower at 948 in Asian morning after closing flat in the previous day while silver gained 1.8% to settle at 14.87. Marc Faber Doom boom.com Author said that he's sure the US will go into hyperinflation as 'the problem with government debt growing so much is that when the time will come and the Fed should increase interest rates, they will be very reluctant to do so and so inflation will start to accelerate'. He suggested buying as an inflation hedge, 'if you bought it in 1980 at the price of $850, then it hasn't been a good hedge against inflation, but if you bought it in 1999 at $251, then it has done very well'.

(Reuters) - High levels of scrap copper imports by Chinese traders are not a sign of healthy consumption and might present risks if global demand continues to be hit by the financial crisis, an industry analyst said on Wednesday

Over 80 percent of scrap copper imported by china is used to produced cables and wires according to cables and wires association 20 percent of manufacturing capacity has been idled.

This means that traders are now the ones buying the scrap copper of grades one and two as a hedge of their funds, so the copper is not really going to the manufactures,"
If economic crisis continues and demand will not pick up , the prices of copper will drop , therefore I don’t think hedging in copper now will be good at these levels.

Trading level for the day , I expect crude too trade in following range
$62.75 – 65$ as far near term crude oil prices May touch $67 level ,
As for Gold futures trading at higher level would be in range of $948- $962 above $965 we can expect gold to touch $980 level., but demand and Equities factors will be dropped prices.