I am worried about the pace of the rise of silver and copper and not the actual rise. Silver and copper have a history of sharp price corrections if and whenever there is massive herd buying. I am of the view that herd buying or short-term hot money is very high in silver and copper. Gold is still in diversification mode as traders and nations hedge against long-term decline in the purchasing value of currency markets.
All asset classes rising at the same time implies that there is excess liquidity globally even without interest rate cuts. Asset bubbles will be formed if the current situation of rising trend in all asset classes continues for the next six months. We need to be watchful of our investment which has a tenure of more than six months.
US economic data releases or any news of any kind is not changing the trend of precious metals, base metals, stocks and forex markets. Bitcoin and cryptocurrencies are on fire as well.
Apart from FOMC minutes, there is no major US economic data releases till Monday. It will be a technical trade. Any reduction in bullish momentum (in gold, silver, copper, and zinc) can result in a nose-dive type price move anytime.
Spot Gold – intraday view
- Spot gold can fall to $2383.70 and $2368.70 as long as it trades below $2423.00.
- Intraday bullish trend will be there only on a sustained fall below $2423.00
Spot Silver – intraday view
- Spot silver can fall to $30.98 and $30.18 as long as it trades below $32.56.
- Bullish trend till Friday will be there only on a sustained break of $32.56.
Disclaimer
- The investment ideas provided is a 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 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 readers are 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
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- 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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