investor guide

GOLD
while gold has been on a winning streak for a decade , its price swings have become sharper in the past few years . since aug 2009 , when the yellow metal breached its 2008 high , its price movement has been linked to the dollar and scepticism over global economic conditions, however there is a risk of inflation with the huge fiscal stimulus over the past 18 months. gold being a natural hedge against inflation , the yellow metal could touch a new high closer to $1,300 an ounce while on the downside , there could be a support at $1,000.
SILVER
the gains in gold prices could provide more respite for silver than the trouble due to sluggish economic demand. while demand from the photography industry has declined in the past few yrs, that from electronic and medical industries is expected to see more innovative usages(such as use in battery of hybrid cars). the momentum in gold could propel the white metal towards its 2008 high of close to $21 an ounce. on the downside, $15 may become a crucial support due to to the pattern in which international prices are moving since oct 2008.
CRUDE
while crude prices have more than doubled from their early yr lows, they seem well capped by the $80 a barrel mark, as demand recovery has been factored in by the gains in the past nine months . while global demands is expected to show a gradual improvement , supply from non opec countries may rise further , limiting the upside . though demand from emerging economies has risen , opec may not increase supply without stronger signs of recovery. in 2010 this tug of war is expected to keep the crude oil supported by$64 while a breach of 480 can take it to $92.
INDUSTRIAL METAL
among industrial metals, aluminium and zinc are expected to post good performance compared to copper at the beginning of 2010. copper may see a correction towards $6,000 per tonne, given the high inventory levels(stocks on the london metal exchange increased by 85 % since july 2009). a combination of demand recovery and a possible supply crunch from the second quarter of 2010 may push prices towards $8000. demand from china traditionally starts showing improvement in feb-april.