Report Date: 28th Jan, 10

Global Services Division

COMEX - Gold
Trading Strategy (for Gold April’10 contract applicable for 3 - 5 days)

Suggested short call missed the entry level yesterday. Traders should stay away today.

Buy/Sell Entry point(s) Liquidation

Futures Contract Entry Point Stop-Loss
[Advised on] triggered on Objective
Gold (COMEX)
Stay away
April’10

Gold lost 13 dollars yesterday and closed near the low point of the day. Dollar’s strength against
basket of currencies is continuously putting pressure on gold prices.

Dollar clocked six months’ high against euro and it looks like it would continue to remain higher for
some more time.

In last four days gold is trying hard to stabilize around $1080 level. So there is a possibility prices
may retrace a bit before start correcting once again.

Now on the downside prices may find next support at around $1076.50 level. If this support is
broken then it may drag towards $1040 level. On the other hand, prices may face immediate
resistance at around $1110 and then at $1120 level.

Short term indicators are suggesting strong signs of bearishness.

Overall, as prices dropped continuously for last 15 days, there is a possibility prices may retrace
a bit. Traders should stay away for the day.
Global Services Division

COMEX - Silver

Trading Strategy (for Silver March’10 contract applicable for 3 - 5 days)

Suggested short call missed the entry level. Traders should stay away today.

Buy/Sell Entry point(s) Liquidation

Futures Contract Entry Point Stop-Loss
[Advised on] Triggered on Objective
Silver (COMEX)
Stay away
March ‘10

Silver futures lost 149 cents last week and in this week also prices started trading in negative
territory. It lost 42 cents yesterday and most importantly closed near the low point of the day.

From morning onwards prices are consolidating at the current level and as is appearing from
hourly chart prices could move upto $16.80-16.90 if it could break $16.64 level.

But on daily chart as prices had broken decisively the support level of $16.88, it would continue
to remain as resistance in future.

Short term indicator are suggesting bearish trend may continue for some more time.

Overall, traders can enter into short position at the suggested level.
Global Services Division

Gold & Silver - Fundamentals

Gold declined on speculation that the Federal Reserve is close to beginning the process of
normalizing monetary policy. Despite the pledge from the Federal Open Market Committee
(FOMC) that interest rates will remain near zero for an “extended period” of time, gold ETFs and
gold mining shares reacted negatively to news that the Fed would indeed honor its March
deadline for ending its $1.25 trillion quantitative easing program.

The world's largest gold-backed exchange-traded fund, SPDR Gold Trust, said its holdings stood
at 1,111.922 tonnes as of January 26, unchanged since January 19.
Global Services Division

COMEX – Copper-HG

Trading Strategy (for Copper Mar’10 contract applicable for 3 - 5 days)

Buy/Sell Entry point(s) Liquidation

Futures Contract Entry Point Stop-Loss
[Advised on] Triggered on Objective
Copper (COMEX) Above
Sell 328/329 ----- 316/314
Mar’10 332
Our suggested long position triggered our given stop-loss of 326 on Wednesday.

Copper for March delivery - HGH0 in the New York Mercantile Exchange's COMEX division for the
first time closed well below the trend line support signalling room for further depreciation in the
coming sessions. On Wednesday prices moved in the range of 317.4 and 335.7 and finally settled
lower at 322.25.
Copper sold off sharply yesterday. This is the biggest single day fall of this year. Prices closed to
a five-week low on Wednesday. Copper declined as dollar strengthened and economic recovery
concerns mounted in response to disappointing home sales data and further policy tightening in
China.

For the recent sharp fall one can expect the copper prices to bounce back towards 328-332 and unlikley to
stay at those levels, which should be considered as a good opportunity to go short in the near term.

On the lower side initial support is seen at 314-310 levels and below to drop till 302–300 levels in the
coming few sesisons. Only if the prices drops below 300 levels then expects continuation of the current
downtrend in the coming weeks also, which also coincides with the 23.6% Fibonacci retracement for the
entrire move drawn from the recent highs of 352.2 and the December 2009 lows of 133.2 levels.
Global Services Division
NYMEX – Crude oil
Trading Strategy (for Crude Oil Mar’10 contract applicable for 3 - 5 days)
Crude oil futures prices seem move sideways in the next couple of trade sessions.

The suggested long position at $74 level got triggered, now traders are advised to come out
around $74.20 level.

Buy/Sell Entry point(s) Liquidation

Futures Contract Entry Point Stop-Loss
[Advised on] Triggered on Objective
Crude Oil Come Out
Bought 74 01/26/10 72.40
(NYMEX) Mar’10 74.20

NYMEX Crude Oil (Mar’10) futures prices ended lower by $1.04, at $73.67 per barrel on
Wednesday.

Prices fell from intra-day high of $75.09 to $72.65 level and settled just below the important
support of $74 level, which indicates that market remains down.

Prices are at $74.20 per barrel in electronic trading session on Thursday.

Now on the downside prices may find immediate support at around $73.50 and then at $72.50
level is very important.

On the other hand, prices may face immediate resistance at around $75 and then at $76.50 level
is very important.

The short-term indicators are signalling around oversold. Stochastic Oscillator (14,3) is at 8.47
points and RSI-14 day is at 35.65 points.

Overall Crude Oil prices seem to move sideways in the next couple of trade sessions.
Global Services Division

Crude Oil News Highlights

Crude Oil Mar’10 futures are at $74.20 per barrel in electronic trading session on Thursday.

Oil rose toward $74 on Thursday, rebounding from six-week lows, after President Barack
Obama's State of the Union address and the Fed's decision to maintain low interest rates
revived some confidence about economic growth.

EIA said domestic crude stocks fell 3.9 million barrels last week, against expectations for a 1.4
million barrel build in a Reuters poll, but much larger than the API's 2.2 million barrel drawdown.

Stocks at the Cushing, Oklahoma, NYMEX delivery hub fell by 700,000 barrels. Distillate stocks
rose 400,000 barrels, against the forecast for a 1.7 million barrel decline and API's 2.0 million
barrel drawdown. Gasoline stocks rose 2.0 million barrels versus the forecast for a 1.1 million
barrel build and larger than API's 916,000 barrel increase. Sales of newly built U.S. single-family
homes fell unexpectedly in December, a sign that the government-led housing recovery might
be losing some steam.

Global Services Division Research powered by

Scott Slutsky, Managing Director
312-563-8325
sslutsky@pfgbest.com

Disclaimer: There is risk of loss in trading futures and options