Asian Metals Market Update for 24th May 2024

The US and UK holiday on Monday implies there can be some abrupt two-way price moves in precious metals and base metals. Right now, the fall in gold, silver, and copper will be called a correction. The short-term bearish trend will be confirmed only if the falling trend continues next week.

The Internet is filled with news that the Chinese demand is very high in gold and silver. Chinese central bank has been the largest buyer of physical gold over the past two decades. They still continue to increase gold reserves and reduce investment in US treasuries. I am not surprised by the news of the Chinese frenzy in gold and silver buying.

In 2003 when I started, there was the Central Banks Gold Sale Agreement or CBGA. This was followed by CBGA2. Central banks that sold gold under CBGA and CBGA2 are now buying gold, increasing their gold reserves. If Asian central banks and European central banks continue to increase gold reserves, then gold is a good long-term investment even at the current price.

Day trading and weekly trading are a different ball game w.r.t investing. Short sellers are always vigilant to take advantage of any available opportunity.

It remains to be seen if the US April core PCE number (on 31^st May) has any impact on precious metals and base metals.

Spot Silver – intraday view

• Spot silver has to trade over $30.10 to be in an intraday bullish zone and rise to $31.10 and $31.67 and more.
• The next big wave of sell-off will be there only if spot silver trades below $30.10 after London opens and till days close.

Platinum July future– intraday view (current market price $1028.20)

• Platinum July future has to trade over $1033.00 to be in an intraday bullish zone and rise to $1059.00 and $1072.00 and $1111.00.
• There will be sellers on the rise as long as Platinum trades below the $1033-$1045 zone.
• Key support in case of a crash is around $990.00)

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

1. ALL VIEWS ARE INTRADAY UNLESS OTHERWISE SPECIFIED
2. Follow us on Twitter @chintankarnani
3. PLEASE NOTE: HOLDS MEANS HOLDS ON DAILY CLOSING BASIS
4. PLEASE USE APPROPRIATE STOP LOSSES ON INTRA DAY TRADES TO LIMIT LOSSES.
5. THE TIME GIVEN IN THE REPORT IS THE TIME OF COMPLETION OF REPORT
6. ALL PRICES/QUOTES IN THIS REPORT ARE IN US DOLLAR UNLESS OTHERWISE SPECIFED.
7. ALL NEWS IS TAKEN  FROM REUTERS NEWSWIRES.
8. TECHNICAL ANALYSIS IS DONE FROM TRADINGVIEW SOFTWARE