Trade Tariff War by US president Donald Trump is not a fluke. The deep motive is to ensure continuity of American supremacy. Since 1970 USA controlled crude oil or energy supremacy. Crude oil is a thing of the past to rule the world. Non fossil fuel energy generation will need (i) Deep sea mining (ii) Copper, Silver, non-ferrous metals and other industrial metals. Trump is trying to make USA the factory of the world, away from China. Trump wants to control global industrial metal price. USA Navy and armed forces of the USA are now primarily focussed on Indian Ocean Region (IOR) as it has huge metal deposits to meet the needs of non-fossil fuel generation. The trade tariff is a means by Team Trump to ensure that the world surrenders to the USA and the world becomes a colony of the USA. Might is right. Only China and Russia have the strength to counter USA. The rest of the world leaders have stated their intent to bow to Trump. Masses are not idiots. They will increase higher investment to gold. A short term bearish phase in gold price will be sustainable, and we can be quite long IF the same is accompanied by a bearish trend in the USA stock markets.
Gold/silver/copper price has been falling after London close, post CME price fixing and rising in Asia and London. This implies a good physical demand all over the world. CME is more of a speculators/trading markets. Speculators are short selling on the rise once London is closed. This trend will change.
US-China trade tariff war and its outcome is being closely watched. The worry in India is that China could use Asia as a dumping ground for its manufactured products.
I repeat, it's not an easy time for short term investors and intraday traders. Avoiding short term trading losses is as a good a making a profit under current circumstances.
SPOT GOLD – current price $3008.60
- TODAY’S VIEW: Spot gold has to trade over $2965.00 to rise to $3027.80, $3077.80 and more.
- A crash or sell off will be there if spot gold trades below $2965.00 today and tomorrow and Friday in the USA session.
- A quick rise will be there if spot gold trades over $3004.50 today.
- Watch $3004.50. Spot gold can move $30-$35 either side from $3004.50.
- Sharp unexpected two-way price moves will continue today as well.
- 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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