Le Metropole Members,
Mahendra Sharma has served commentary at The Toulouse-
Lautrec Table titled:
"WILL GOLD REACH HISTORIC HIGHS IN THE NEXT NINETY DAYS OR IS IT THE END OF THE JOURNEY?"
Dear Members/Friends
I would like to start my newsletter with metals, as it is predictions on metals that gave me international popularity in the last six years. Indeed, key traders around the globe have continued to closely follow my metal predictions, and the first one to talk about my work was GATA – Bill Murphy. Jupiter guided me to predict a multi-year bull market in metals when gold was trading at $270, and many people were attracted by my Astro-cycle predictions. Indeed, the predictions of the rise of gold may have come as a new hope.
I shall do my best to guide in regard to the overall outlook, but it is also necessary to be keen on technical charts, world economic health, global geo-political situations and risk management. There is need to engage in all useful study as I believe that ignorance can put one onto the wrong path. As part of the resolves for this year, we should therefore strive to follow all important rules when investing our hard earned money. Try to remember and apply all the important points each day and I am certain that 2007 will prove to be the best year in your life.
We start 2007 with metals:
The following ten days will tell us whether gold will hit historic highs in the next ninety day or not.
A sharp fall in the first week of 2007 was a surprise to me and though I expected a weak trend, gold and silver went down more than I had anticipated. Indeed, metals are in a great positive cycle, only that they are not showing much strength. That is why I have not yet given a strong buying recommendation. Nevertheless, the outlook should change in the next few weeks.
The allure of speculation is becoming brighter than real glimmer of gold, and this is worrying and quite upsetting. It gives rise to the question of whether the bull market in gold is over or not. Will my prediction of gold reaching $1000 ever come true? Well, today we’ll try and reveal the answers.
Unfortunately, gold has emitted a negative signal during a positive cycle and this fact may portend some disconcerting moments for metal investors in 2007. The trend of gold is poised to be sideways for most of 2007, though it shall trade positively up to March 2007.
After this period however, a very uncertain trend will take root and it will persist till September 2007. During this period, we are likely to witness major volatility and some discerning people will have an opportunity to make tons of money by buying and selling at higher levels while buying back at the right time. I shall try my best to guide you through my weekly newsletter.
If gold fails to reach $1000 by March, then I seriously doubt its ability to do so in 2007, and this is therefore quite upsetting news for metal investors. One should therefore trade smartly. On my part, the weekly newsletter will guide you well and we may even make more in trading than what we could have made with gold reaching $1000.
However, I am still hopeful that gold could hit new historic highs in ninety days. The countdown starts this Thursday (11th January 2007).
This year silver will very closely follow gold’s movements and one should therefore expect the little sister to move in accordance with gold’s trend. On a few occasions in the course of the year, silver with act strangely and experience major volatility. I shall feature this in my weekly newsletter whenever it is poised to occur. In February and March, silver should remain in the hot seat and it could actually attain new multi-year highs or possibly $18.80 or $20.80. You should therefore wait for my recommendation, which should come in the next ten days.
I am not optimistic about the trend of platinum, zinc, aluminum and palladium, though copper will have great rises on a few occasion during 2007. Indeed, I shall not at all be surprised if it once again reaches the previous high.
ENERGY
The great era of oil is over and I thank Saturn for correctly guiding me in regard to the start and ending of that period. 2007 will have mixed fortunes for oil, and it will trade around $44.80 on the lower side, while the high should be around $67. Indeed, oil is likely to trade without much strength and any rising should therefore be taken as a selling opportunity. All the same, one should buy whenever I give a strong recommendation. The overall outlook indicates that energy stocks will be the worst performers in 2007, and one should therefore avoid any investment in the energy sector after March 2007.
GOLD
Metal investors had a bitter taste
during the first three days of the first week’s trading session of 2007, as gold went down more than five percent. I take this as a warning signal to all who were loading up metals. The purity strength of gold is gone and speculation has taken root, therefore be very careful before you load up the metals.
This week gold will trade on Monday by showing some positive signs, and the positive trend may continue till mid-Tuesday. It will however trade sideways or weakly from Wednesday to Thursday. I don’t recommend any new buying after Tuesday, therefore be aware of that. Nonetheless, I may issue a buying signal on Friday.
The trading range for gold will be $612.80 to $594.80.
We may see a short-term recovery on Monday or till early Tuesday, though weakness should dominate the trend for the next four days.
SILVER
Silver went down quite sharply on Friday last week, and this is not at all an encouraging sign. This week silver will trade weakly, but planetary movement may give a buying signal on Thursday.
The trading range for silver will be from $12.24 to $11.78.
A fall of more than one dollar is indicated in silver prices, and there is therefore no need to buy in haste.
OIL
A sharp mind-blowing correction came in oil and we are lucky that since last four months, oil is not in our favorite list anymore. We shall avoid trading in oil for the next several days as this week oil could fall towards a new low. However, a sharp upward trend could start from Thursday and one can therefore take a buying position. If oil fails to rise this Thursday and Friday as well as during the next week, then it could fall up to $41. 
I however, see a short-term rising that will start any time after this Wednesday.
Heating oil and unleaded gas shall be trading within a very thin trading range, while natural gas will show signs of strength. It might actually gain from Monday and Tuesday. Remember that overall, the long-term position of the energy sector is not very optimistic.
The Goldman Sachs commodity index, which is highly weighted on oil and has very high leverage, has fallen so sharply that any trading account that was holding a buying position could have been wiped-out.
CURRENCIES
Those who were talking about the fall of the dollar are confused after seeing last week’s dollar price movement. The dollar index gained sharply and held up its gain quite strongly. Last week’s strong recommendation to buy the dollar has proved beneficial and we shall hold buying position in the USA dollar and Japanese Yen against European currencies as well as side currencies.
This week the dollar will trade a bit weakly during the second half of Monday as well as early Tuesday. It should however get back to the positive territory and trade positively till the end of this week.
The Japanese Yen as well as the Canadian dollar shall gain this week, but the British pound and the Australian dollar shall keep losing their value. Trade accordingly.
The British Pound has sharply lost its value against the US dollar. Take a selling opportunity of each rise.
This year, the South African rand, South American currencies and Asian currencies like the Indonesian Rupiah will lose value by more than 15 percent. Long-term traders can therefore plan their trades accordingly.
Sell all major commodities on Monday. Planetary movement indicates that a rally in oil and metals may start for the short-term, therefore wait for my update on Thursday or Friday.
Buy the Dollar index. 
Sell the stock Market.
In conclusion, I have been wrong twice during THE LAST SIX YEARS of predicting the unpredictable market trends:
1. In 2004 and 2005 I predicted weakness in the stock market but it never happened.
2. In 2006 I was off-track concerning metals for the first four months, but I later emerged onto the right path.
For anyone that has lost by following my recommendation, I pray that this year they make far more than they have lost. 
For those who have made good gains, I pray that their rising journey may continue: I pray that we may remember to engage in charity work and share part of the profit with the needy in society.
I wish you a good trading week.
Thanks & God Bless
Mahendra Sharma, 8 January 2007