Investing.com historical data of spot gold and spot silver indicates that a lot of activity has happened over the past weekend in spot gold and spot silver. Probably there was a major short covering (in spot gold and spot silver) in CFD trades and OTC trades. Technical breakout added to the sharp rise from last Friday's close.
India’s election result outcome is uncertain. An unstable government (if any) will significantly increase India’s physical demand for gold and silver. I do not buy the mass prediction of a landslide victory of the BJP government. The previous BJP led campaign of “India shining” is the best example of how election prediction in India can turn out to be zero. Custom duty on gold imports and silver imports will not be changed unless a new political alliance rules India. India’s appetite for bullion and bullion investment in any form will not be price elastic. Indian people will be overall buyers on crashes. The young India has understood the power of gold investment which was very little before the COVID-19 pandemic.
Historically gold and silver have not risen significantly between June to September months. This year history may not repeat itself as momentum is very bullish. Unless US stock markets move into a bearish zone, even a sustained short-term bearish trend will not be there in precious metals and base metals. Yeah, global stock prices need to crash for a sell-off in metal prices. It’s all directly interlinked due to short-term hot money in all asset classes.
The big question that now remains is “Will a fall in April core PCE inflation number cause the Federal Reserve to cut interest rates on the 12th June meeting”? All US economic data releases and any major global event are having a zero impact on short term trend in precious metals and base metals. It seems machines or AI-based technical are dictating the short-term prices.
Spot Silver – intraday view
- Spot silver has to trade over $31.32 to be in an intraday bullish zone and rise to $33.20 and more.
- A mild sell-off will be there if silver trades below $31.32.
Comex Copper July – intraday view
- The key price to watch is $483.20
- Copper has to trade over $477.30 to rise to $498.30 and $503.70.
- A mild sell-off will be there if copper trades below $477.30.
- A quick rise will be there if copper July trades over $486.30 after LME opens and till days close.
Disclaimer
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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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