Asian Metals Market Update for 6th June 2024

Buy on dips strategy is still overall profitable in gold. Silver buyers were cautious yesterday. But the reversal in silver, indicates that silver may have formed a short-term bottom this week. Incoming US economic data releases (for the month of May 2024) so far this week indicate a mild slowdown. A quicker pace of rise of the interest rate cuts will be there in case there is a rise in unemployment rate over the coming months and the inflation (CPI and Core PCE) curve starts to flatten.

UK elections on 4^th July will also be bullish for gold and silver. Speculation of a new UK Prime Minister will increase demand for gold and safe havens. Cable is rising versus the US dollar on hopes that a leadership change will do all it can for higher employment opportunities in UK. Political uncertainty in key nations will always be bullish for gold and precious metals.

India’s election result has told the world not to bet aggressively on opinion polls or exit polls and other similar stuff. Retail traders had a historical loss this week on Indian stocks. Why? The prime minister and his team were constantly giving a view that if they come to power in a big way, the Indian stock market will reach planet Mars. However, after the result, the crash was equally historical. All I am trying to say is that please do not take unnecessary risks based on what's trending in news media, YouTube, and social media. All asset classes are interlinked. A significant fall, I am using the word, “significant fall” in any asset class will negatively impact all other asset classes. The chain reaction will be huge trading losses for the day and short-term trading communities.

The cost of living is rising much more than our incremental rise in income. Taxes, in every nation, are rising every year. Savings and frugality is the need of the hour. One should not increase his/her misery by having trading losses or investment losses. If you are not confident or you are unwell, do not trade/invest. “Zero Tolerance to Capital Erosion” should be the mantra.

Tomorrow’s US May nonfarm payrolls will be followed next week by the Federal Reserve meeting, CPI, and PPI inflation numbers for the month of May. There can still be some sharp unexpected two-way price moves in precious metals and base metals.

Spot Silver  – intraday view (current price $30.40)

• Spot silver has to trade over $30.17 to rise to $31.37 and $32.70.
• A quick rise will be there if spot silver trades over $30.77 today.
• A mild sell-off will be there if spot silver trades below $30.17.

CME Platinum July – intraday view (current price $1007.90)

• Platinum July future will rise very quickly if it trades over $1009.40 to $1033.80 and $1067.30.
• Watch $1009.40. Platinum July can move $25-$30 on either side from $1009.40.

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