Asian Metals Market Update for 30th May 2024

May 30, 2024

Short sellers and buyers both need to be careful in their intraday trading strategy. Today and tomorrow’s fall (if any) will be called profit-taking before the key US economic data releases which start today and continue till 14^th June. The short-term bearish trend will be confirmed (in gold and silver) only after the technical scenario on 7^th May after the release of nonfarm payrolls.

Intraday volatility and short-term volatility will be very high. Day traders’ paradise. Short-term investors in precious metals and base metals will get a bumpy road if they have not used trailing stop losses. Fundamentals have not changed for precious metals and base metals. Short-term volatility and even a short-term price crash are needed for a big sustained medium-term rally.

SOME NICKEL NEWS

The London Metal Exchange (LME) has approved the listing of the first-ever Indonesian brand of refined nickel. "DX-zwdx" isn't the most memorable of historical markers but the new brand's inclusion on the LME good delivery list represents a watershed moment for the global industry.

The new "DX-zwdx" brand, grading a minimum of 99.8% pure nickel, is the culmination of that technical evolution. PT CNGR Ding Xing New Energy, a joint venture between Chinese battery materials group CNGR Advanced Material Co., opens a new tab and a local company, that can produce 50,000 tons of full-plate metal to that specification every year.

(ABOVE HAS BEEN COPIED FROM REUTERS NEWS)

My View on LME inclusion of Indonesian nickel price: Nickel price should rise in LME and globally after LME’s inclusion. The rise in trading volumes should be bullish and will reflect real fundamental prices. Physical Traders will still be cautious and will not have significant open positions in LME nickel over fears of being overridden by a cartel. Yeah, I believe a big cartel in LME controls base prices in LME. This so-called unofficial group/cartel will not be known or even disbanded.

Spot silver – intraday view (current price $31.61)

Spot silver has to trade over $31.60 to rise to $32.30 and $33.00.
Mild sell off will be there if silver trades below $31.60.
Crash point is at $31.24 today for spot silver.

LME NICKEL SPOT – intraday view (current price $20519.00)

Nickel has to trade over $20307 to be in an intraday bullish zone and rise to $21549 and $21916 and $22121.
Mild sell off will be there if crude oil trades below $20307.00 with $20075 as key support till tomorrow.
Key support in case of a crash is at $19682.00.

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