Asian Metals Market Update for 31st May 2024

It will be difficult to predict the impact (on precious metals and base metals) after former US president Donald Trump was found guilty of and becomes the first US president of convicted of a crime. Intraday volatility will rise.

Rise of gold and silver in USA session implies more investment demand worldwide and less physical demand. The fall in copper price is just a correction and not a medium-term bearish trend. There is profit taking in short term investment demand of copper.

The Reserve Bank of India has moved a little over 100 tonnes of gold from the UK to India. More could be repatriated to India over the coming months. This reflects the growing de-dollarization of the world and Asian nations. I believe that this move will be bullish for gold. The USA and the UK hold a large part of central bank gold reserves. There is speculation that some gold is just there on paper. UK and USA will be forced to buy gold from the market (over the coming years) if more and more demand for the repatriation of their gold reserves. My worst-case downside for gold will be the $1900-$2000 zone with infinity as the price target.

Be extra vigilant today and the whole next week. Knee-jerk price moves (if any) is also technical, probably caused by Algo traders. Machines are taking over the human brain in precious metal trading.

Spot gold  – intraday view (current price $2342.20)

• Spot gold has to trade over $2328.00 to rise to $2372.10 and more.
• Mild sell off will be there below $2336.00.

PLATIMNUM JULY CME FUTURE – intraday view (current price $1030.70)

• Key price to watch: $1010.00 and $1056.00
• Platinum July future has to trade over $1027.00 to rise to $1048.50 and $1065.00 and more.
• Mild sell off will be there below $1027.00.
• Key support till next week is at $1010.00.

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