It was a muted response (in Asia) to Russia’s Pearl Harbor moment yesterday. Gold and silver did not zoom. Copper rose. Crude oil rose. Why? Russia’s response is not there so far. China is closed today. More and more long-term investors will be attracted to the gold price after yesterday’s drone bombardment by Ukraine of Russia’s key deep inland military bases. (X) If a European country is targeted, then the gold price will easily break past $3500 and also trade over $3500. (XI) If Russia's response is limited to Ukraine, then it should be a technical trade.
Social media says that USA-UK-Europe were all involved in the drone bombardment of Russia’s deep inland military assets. Long-term nuclear bombers were targeted. The nuclear submarine base was targeted. Speculation is that there of over $4 billion losses to Russian military capabilities.
All kinds of metals demand in artificial intelligence (AI) powered drones, causing havoc in Russia. This is just the beginning for the world. Terrorists will also use AI-powered drones to kill masses, kill key political leaders, and increase terror worldwide. An AI-powered drone is not very expensive. What we have seen in Hollywood movies has come to a reality.
Metals demand by the drone industry is another key area of demand that we need to keep a close watch on. There are no projections as of now. Drones and robots use metals. A destroyed drone is not recycled quickly. A redundant robot is not recycled quickly. I expect a huge shortage of metals used in drones and robots in the long term. (My long-term period is five years or more.).
Implications will be far-reaching as far as the global impact of “Russia’s Pearl Harbour moment”. “Scary for masses”, “Scary for global peace” or a new feudalistic medieval Europe style barbaric world order. Anti-dote systems will be installed everywhere in the world to prevent yesterday’s style destruction. Gold will only rise in the long term. This is another new factor for us to invest in gold on dips. To increase gold investment as a percentage of a long-term investment portfolio.
Just trade in the technical for intraday and short-term in precious metals and base metals. US May Non-Farm payrolls will be in focus. Silver will break free from the recent $32.00-$34.00 trading range and form a new range. Either be out and out an out-and-out intraday trader or a medium-term investor. Losses can be big if your trading/investment period is between one week to five weeks. (in gold and silver, and copper). Every day, there is news that flows which can confuse to change the short-term trading/investment position. (in all asset classes).
SPOT GOLD – current price $3310.90
- Spot gold has to trade over $3285.00 to rise to $3326.20, $3362.60, $3395.70, and more.
- Crash or sell off will be there if spot gold trades below $3285.00 after the USA open, till day close, and also tomorrow.
- There can be some very sharp two-way price moves.
- Views are intraday.
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
- 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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