Asian Metals Market Update for 14th October 2024

October 14, 2024

The mild fall of gold and silver in Asia is just a correction and not a bearish trend. There will continue to be buyers on dips. The lack of escalation in the Israel-Iran conflict resulted in profit-taking. Traders will always go long on Friday and/or the last trading day of the week due to hyper fragile geopolitical situation in the Middle East.

From a trader's perspective, unless buy-stop losses do not get triggered for a few days, short selling will not be there in any asset class which includes gold and silver. The bullish retail sentiment is hyper-bullish in gold and silver, not seen in the last four decades.

Intraday price moves and intraday volatility are needed to attract volumes. Post-pandemic the generation born after the year 2000 or the YOLO generation (You Live Only Once=YOLO) prefers to invest mainly in high-risk and high-quick return asset classes. Most are least interested in making long-term investments. Buying Bubble will be there in gold and silver if not before Christmas then before the second half of next year. I do not have a view as to when this bubble will burst and around which price. I am just trying to make sure that you do not get stuck if and when this buying bubble bursts.

China is not opening all its economic stimulus cards. They are right. Chinese authorities want to ensure an orderly rise and sustained in their stock markets. If they disclose everything the boom-bust price moves will hurt the masses more than anything else. I expect copper and base metals to see an orderly price rise for the rest of the year. I am expecting a steady rise in Chinese economic growth.

No major us economic data releases for the next two weeks. India’s bullion demand should form a peak in the next two weeks. We need to be extra careful on intraday trades.

Comex Silver December – Current Market price $3145.00

Key weekly support: $2983.00, 3031.00, $3065.00, $3089.00 and $3122.00
Key weekly resistance: $3228.60, $3288.00, $3319.50, $3435.00
Silver December can rise to $3435.00 and more this week as long as it trades over $3062.00.
A daily close below $3062.00 for a minimum three consecutive trading sessions is needed for a bearish trend in silver December.

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