Trend is bullish for gold, silver, copper and crude oil. There will be short covering rally if price rises today. Lack of any major economic releases implies that it will be a technical trade.
Gold ETF or Physical gold
One gold ETF provider was giving an advertisement in almost every television channel in India, conveying a message that it is safer to invest in gold ETF than physical gold. The advertisement goes on to show that physical gold stored in your house is bound to be stolen. The advertisement portrays as if there is a hundred percent change of thieves breaking into our houses in India and stealing the physical gold. Hence gold ETF is the safest way to invest in gold.
Blatant Lie. Anti-India advertisement camp again. How? We do not own anything which is in electronic form be it gold units in gold ETF, or gold in sovereign gold bonds (SGB) or shares in electronic form or money in electronic form among others. The state and law enforcement can prevent us from accessing and using anything in electronic form which includes gold ETF and SGB. State can simply block us from accessing any of our asset which is electronic form. In physical gold we have an option to counter electronic forms of investment.
Scamsters are taking away our money and electronic asset by just the click of a wrong link or sharing a wrong OTP in India. The electronic thieves are a big danger to our asset and society. The only way to hedge or protect against online scams or electronic scams is to increase our investment in physical gold.
Is the law-and-order situation in our cities and in general in India so bad that it rules by thieves? The advertisement conveys a message that Indians and people of India are at the mercy of rampant theft. Indian cities and India in general are safe as compared to growing population. The amount of hard work which Delhi Police does to keep the city safe and crime free is unthinkable. As a patriotic Indian, I believe that such ads should never have been passed by the relevant authorities.
Lastly gold ETF underperforms physical gold and gold futures. I have never recommended to invest in gold ETF and will continue to be against it. I have advised investing in sovereign gold bond over gold ETF.
A big short covering will be there if there is a sustained break of key resistances in gold, silver, copper and crude oil. Watch the current price closely.
Spot Gold
- Daily support: $1876.70, $1886.20.
- Daily resistance: $1903.30 and $1912.90 and $1931.10
- Spot gold can rise to $1912 and $1926 as long as it trades over $1880.90.
- Crash or sell will be there if spot gold trades below $1880.90 after London opens and till days close.
Spot Silver:
- Daily Support: $22.52, $22.70
- Daily Resistance: $23.50 and $24.10
- Spot silver can rise to $24.44 by tomorrow if there is sustained break of $23.50.
- Overall trend is bullish as long as spot silver trades over $22.70.
Disclaimer: Any opinions as to the commentary, market information, and future direction of prices of specific currencies, metals and commodities reflect the views of Chintan Karnani. In no event shallI have any liability for any losses incurred in connection with any decision made, action or inaction taken by any party in reliance upon the information provided in this material; or in any delays, inaccuracies, errors in, or omissions of Information. Nothing in this article is, or should be construed as, investment advice. All analyses used herein are subjective opinions of mine and should not be considered as specific investment advice. Investors/Traders must consider all relevant risk factors including their own personal financial situation before trading.
Disclosure: I do not trade/invest in spot gold and spot silver and even in comex future.
NOTES TO THE ABOVE REPORT
- ALL VIEWS ARE INTRADAY UNLESS OTHERWISE SPECIFIED
- Follow me 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.
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