In one of my previous articles, I had written that the pace of rise in gold price will slow till September. Positive developments in the trade tariff war have reinforced this view. There are no major US economic data releases for the next ten days. It will just be a technical trade for the next ten days.
“Trump Says”, the magic word, will not apply to the gold price. “Trump Says”, the magic word, is getting applied to every asset class. Trump and his team cannot control the medium-term bullish trend of the gold price. Short-term flip flops will be there in gold, precious metals and selected asset classes.
“Trump Says” that he has stopped the India-Pakistan War. Wrong! US interest and Chinese interest got butchered and exposed, hence they interfered to stop the Indo-Pak War. The USA and the Trump family have some big business interests in Pakistan. They interfered to save their investment in Pakistan. “Trump Says” magic word will not work on his dealings with India and even some other Asian countries. “Trump Says” in every internal matter of every country. The blackmail of no trade with the USA will not work by next year with India and Asia.
“Trump Says” the phrase will ensure continued higher physical demand in physical gold and physical silver on a major price fall. “Trump Says”, the phrase, will also create new geopolitical alliances and new bilateral trade alliances.
Copper and non-ferrous metals will rise or remain firm as long as there is no negative news on the trade tariff war. I will prefer to focus on resistance in the absence of new news.
Gold can range trade as long as key very short-term resistances are not broken. Silver rise/crash depends on the ability/inability to break and trade over key resistances.
SPOT GOLD – current price $3236.40.
- Spot gold needs to trade over $3226.60 to rise to $3279.10, $3313.30, and more.
- Mild sell off will be there if spot gold trades below $3226.60.
- Key support in case of a crash is around $3188.50. A daily close below $3188.00 is needed for a very big crash.
- Spot gold will also crash if it does not break $3279.10 by Friday close.
- There can be some very sharp two way price moves.
- Views are intraday.
Disclaimer
The investment ideas provided is purely independent view point and are solely for collective learning and for academic interests. There is no commercial benefit accruing or have deemed to accrue to me out of providing such investment ideas.
The investment ideas shared here cannot be construed as investment advice or so. If any reader is acting on these advices, they are requested to apply their prudence and consult their financial advisor before acting on any of the recommendations made here. I am not responsible to anybody in the event of profits and losses (if any) upon acting on such advice.
I hope that our reader is aware about this well aware of the risk involved in trading in commodity derivative trading.
Disclosure: I trade in India's MCX commodity exchange. I have open positions in India's MCX commodity future. I do not trade in CME future or OTC spot gold and spot silver.
NOTES TO THE ABOVE REPORT
- ALL VIEWS ARE INTRADAY UNLESS OTHERWISE SPECIFIED
- Follow us on Twitter @chintankarnani
- PLEASE NOTE: HOLDS MEANS HOLDS ON DAILY CLOSING BASIS
- PLEASE USE APPROPRIATE STOP LOSSES ON INTRA DAY TRADES TO LIMIT LOSSES.
- THE TIME GIVEN IN THE REPORT IS THE TIME OF COMPLETION OF REPORT
- ALL PRICES/QUOTES IN THIS REPORT ARE IN US DOLLAR UNLESS OTHERWISE SPECIFED.
- ALL NEWS IS TAKEN FROM REUTERS NEWSWIRES.
- TECHNICAL ANALYSIS IS DONE FROM TRADINGVIEW SOFTWARE
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