Asian Metals Market Update for 4th June 2024

Yesterday, there was a technical rally in gold, silver, and copper. First day of the month. Anything can happen. There can be a trend reversal to bearish once again if US stock markets crash due to whatever reasons.

The $2400-$2500 zone will be the real test for spot gold in case price continues to rise after the NFP and Federal Reserve Meeting. There are buyers in spot gold around $2300 as prices have been reversing consistently from around $2300. Unless there is a high probability that spot gold will see a sustained fall below $2300, there will be buyers on dips.

News inertia is there. US economic data releases have not been able to create trend-changing price moves in any asset classes. Only bond yields are paying a yoyo curve. Political news no impact. It seems precious metals are a Tug-O-War between short-term technical traders and long-term bulls. The end result is a wider range trading.

One needs to be wary of the X factor news or X factor economic data releases which can create sustained one-way price moves. Masses are buying on dips in gold and silver. Industrial users will be increasing physical inventories on the significant price crash of copper and base metals. Will the masses win? Will the industrial user win? Or will the short seller win? There will be short sellers at some point from now till September.

If you are not confident avoid trading for a few days. Losses can be much higher than most of us expect.

Spot silver  – intraday view (current price $2348.20)

• Spot gold has to trade over $2330.00 to rise to $2370.00 and more.
• Mild sell-off will be there below $2330.00.

ALUMINUM LME cash – intraday view (current price $2681.00)

• Aluminum LME Cash has to trade over $2641.00 today to rise to $2748 and more.
• Key resistance is at $2748.00. Only a sustained break of $2748.00 will create another wave of rise.
• 50-day simple moving average around $2546.60 is the key support in case of a crash.

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