Asian Metals Market Update for 26th October 2023

Gold and silver rose yesterday and moved away from a slight chance of a sell-off after comments from the Russian president on the Israel war.

Russian President Vladimir Putin warned the conflict could spread beyond the Middle East and said it was wrong that innocent women, children, and old people in Gaza were being punished for other people's crimes.

"Our task today, our main task, is to stop the bloodshed and violence," said Putin in a meeting with Russian religious leaders of different faiths, according to a Kremlin transcript.

"Otherwise, further escalation of the crisis is fraught with grave and extremely dangerous and destructive consequences. And not only for the Middle East region. It could spill over far beyond the borders of the Middle East."

(News copied from Reuters news.)

Israel war is an indirect war between two religious faiths. Hamas and its allies are all supported by anti-NATO nations like Iran, North Korea, and the Islamic nation of Pakistan, Qatar, and Turkey. Hamas, Hezbollah and other so-called global terror providers have a huge support of certain state-level political parties in India. Previously they were hidden. Now they have come for open support to Hamas etc in India. Hamas cannot be wiped out. Gaza strip will be similar to the Kashmir region in India, where our security forces have been fighting every second for decades. Funding is not a problem for Hamas and its associates and will never be a problem. Gold will continue to rise on an overall basis. The pace of the rise of gold could be the slowest among all asset classes in certain quarters. Nonetheless, gold prices will rise.

Let’s ignore Hamas and geopolitics and focus on economics and economic outlook. Till 16^th November, Day traders, jobbers, and weekly traders just focus on technical resistances, the ability to break and trade over key technical resistances. This is for gold and silver traders and physical dealers and jewellers. Copper and base metals have to take a reverse view of precious metals. They need to look at key medium-term support and short-term support, the ability/inability to trade over key medium-term support and then decide on the physical buying and selling strategy.

Yesterday I was disappointed by copper. LME cash copper failed to trade over $8100. It seems there were short selling around $8100. I will be very careful with copper and base metals price today and tomorrow.

Will A Bitcoin Rise To $50,000 Before The End Of The Year Derail The Bullish Trend In Gold And Silver?

Media is filled with view that Bitcoin or btc/usd will reach $50,000 around Christmas. The worst could be over for selected cryptocurrencies. The big question for me is that will rising crypto currencies or a bullish cryptocurrencies cause a re-emergence of a bearish trend in gold and silver?

Blackrock and some the largest hedge funds are expected to be given the green light for a crypto currency exchange-traded fund (ETF) by US regulators and also by regulators of other nations. Investment flows in cryptocurrencies ETF could be unthinkable, if given legal status.

Gold and silver can see a very short-term bearish zone temporarily. Physical demand will zoom for gold and silver on crashes and central bank buying will ensure that price do not move into a long term bearish zone. Short-term hot money will move away from precious metals to crypto etf. The pace of rise of gold and silver will be very slow. Bears will be a R.I.P in case spot gold trades over $2000 for a month and spot silver trades over $25.00 for a month. (this has not happened in the past).

COMEX GOLD DECEMBER 2023 (current market price $1996.80)

• Key price to watch: $1995.00

• Gold December has to trade over $1982.40 to be in an intraday bullish zone and rise to $2011.90 and $2028.90.

• Crash or sell off will be there if gold December does not break $2007.40 by tomorrow close.

COMEX SILVER DECEMBER 2023 (current market price $23.07)

• Key price to watch: $2310.00.

• 50 day MA: $2310.00

• Silver December has to trade over $2270.00 to be in an intraday bullish zone and rise to $2382.00 and $2366.00 and $2419.00.

• Mild sell off will be there if silver December trades below $2270.

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 shall I 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 the author 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. Prepared by Chintan Karnani

Disclosure: I do not have any trading positions on the trading strategies mentioned above. I do not trade in Comex futures.

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