Asian Metals Market Update for 20th August 2026

August 20, 2026

The buy-first-and-sell-next strategy for short-term traders has historically been profitable between August and January since 2006. The technical correction is over in gold and silver this past Tuesday-Wednesday (Asia trade), and the only way is up for the rest of the year.

When and under what circumstances can there be a sell-off in precious metals?

US bond yields (near-dated and far-dated) rise by another 0.50% and remain over it for thirty days to sixty days.
AI stocks are in a short-term bearish zone.

A sustained rise or a medium-term bullish trend in the US bond yield will be the biggest enemy for all asset classes, including bullion. Yesterday’s bond buyback news indicates that the USA and its allies will prevent any sustained and significant rise in US bond yields.

I have never seen such a big annual increase in mobile phones since it was introduced in India. Industrial raw material cost (from the beginning of the Iran war) has reached the stratosphere. Some of the industrial chemicals are price inelastic and have no major substitutes. Even the substitute chemical prices have skyrocketed. This is the year when core sector growth and core sector profitability are very high in most countries (except China). Core sector price inflation (globally) will not fall unless the Iran war is over. Please do not go by the headline inflation number. Just keep a close watch on food price inflation and core sector price inflation. Gold is the best hedge against this type of inflation.

War and energy prices have a big lagging impact on the global economy. I may be out of sync, but a more sustained crash in AI stocks is inevitable and also in the global economy.

When Bitcoin and cryptocurrencies were introduced, the world believed that they were a replacement for bullion. It never happened and will never happen. Artificial Intelligence stocks and tech stocks are not a replacement for bullion. AI is not money. Gold/silver are the purest form of money.

My key focus area is what US President Trump will do once the US Senate elections are over. There is uncertainty. Trump's approval ratings are pathetic and indicate a massive loss for Republicans in the US Senate elections. He will be doing a lot of things to win the support of American voters in the next two months. Gold/Silver are the best hedge against uncertain Trump moves.

There will be a new wave of rise if yesterday’s rise continues today, tomorrow, and next week. The 2026 high can be broken in gold and silver if prices remain at or above $4500 (spot gold) and $67.00 (spot silver) for the next ten trading sessions.

Intraday traders need to remain on the sidelines today and tomorrow.

Spot Silver – Current Market Price $67.04

100 day simple MA: $67.11
200 day simple MA: $74.42
Key intraday resistance: $70.80 and $72.13
Key intraday support: 63.35 and $65.04
INTRADAY VIEW: Spot silver will rise very quickly if it trades over $67.11 to $68.69, $70.80, and more.
A crash or sell-off will be there if (i) Spot silver does not break $70.80 by next week and (ii) Spot silver trades below $66.39 initial support after the London open and till the day's close.
Views are intraday unless otherwise specified.
Low-risk traders and low-risk takers trading in silver (spot, futures, and ETF) should preferably be intraday traders till the end of August. I expect a big gap to open in Asia (Singapore open) every day till the end of August in spot silver.
A systematic investment plan (SIP) or monthly SIP (physical or ETF, your choice) is the best way to invest in silver for the low-risk takers.
Derivative trading in silver is not for the low-risk takers.
Please assess your own risk profile if you intend to do derivative trade in silver or trade in silver futures in any commodity exchange of the world.

DISCLAIMER: The investment ideas provided are purely independent viewpoints and are solely for collective learning and for academic interests. There is no commercial benefit accruing or 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 this advice, 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 well aware of the risk involved in commodity derivative trading.

Disclosure: I trade in India's MCX commodity exchange. I have open positions in India's MCX commodity futures. I do not trade in CME futures or OTC spot gold and spot silver.

NOTES TO THE ABOVE REPORT