Gold futures plunged 2%, Crude Oil Prices tumbled on profit taking .

Why oil prices have more than doubled from the bottom is that traders are using it as a hedge against U.S. dollar weakness, and a way to play the reflation trade. Supply constraints will become a bigger issue once the recession ends.

Gold
Precious metal slumped as USD rallies, Gold prices settled down $18.80 at $965.60 and ounce .their biggest one day drop we have since in almost two months as dollar rally and Oil prices tumbled on profit taking.

• Gold prices sell off due to dollar posted sharp gains after comments by Asian officials that Asia would keep buying US treasuries even if the U.S credit rating were to be cut.
• The precious metal could go parabolic to the upside as the US Investor becomes fearful of the prospects for the economy and inflation
• Gold / Oil ratio at 14.55, higher than the 14.26 of the previous session.

Silver
Silver future prices ended down 4% at $15.310 an ounce as the dollar’s strength dent investment demand. I Shares Trust SLV fell it’s holding about 3tonnes from the previous day’s record high.
Silver prices climb 43 percent in 2009 to date .for as long as investment buying continues, silver will do well. (But ) it is a very risky play.

Crude Oil
Crude oil prices retreated – 3.5% to settle at 66.12 on Wednesday a day low was 64.95 as an unexpected increase in crude inventory raised concerns about economic recovery. Eventually investors has book profit in oil futures as most appealing assets which has been soars from last six days on higher side.

Trading call for the day!

Last Trading session we have seen precious metals has ended lower side, we see Gold could weaken further, as the metal has corrected sharply after it approached the $1000 level each time in the two years.
Over all pull back in the commodities market lead by Oil, led to decline on Gold.
Gold prices trade in consolidation move, should trade in range of $ 960 – 974

Silver has completely out – paced gold, because it was gaining at the same time from gold going up , and the base metals going up .
We expect silver prices has good support at $14.75 , which it shall maintain , move further it last high .

Crude oil prices seems good momentum move further we can expect , as crude oil trading above $65 which consolidation phase at these levels. Crude to trade in range of $65 – 69 level for the day .
Happy Trading !