The technical correction was over. The next big wave of sell-off will be there only if the price trades below the recent low in gold, silver and copper. Crude oil will very volatile.
There is readjustment on the interest rate cut factors. Bet are placed between three interest rates cuts (by the Federal Reserve) to four interest rates cuts. (i) Some traders are betting on interest rate cuts in every Federal Reserve meeting from March onwards. (ii) Some are less. This mini-Tug-O-War on interest rate cuts will increase short-term volatility. (till 31st January). Day traders' paradise. Caution for short-term investors.
China may cut banks reserve ratio to further boost its economy. Any such news and speculation regarding indirect economic stimulus in China will be base metals positive. I am against short-selling base metals. I am against physical buying in UN Fix Mode in copper and zinc. Aluminum will be very volatile.
Chinese markets will be closed in the first two weeks of February. Indian traders exporting and importing from China are expecting a full stop on/from China anytime after 27th January. Physical premiums of copper and zinc should rise as January progresses.
Spot Gold (current market price $2035.00)
- Daily support: $2007.50, $2016.30 and $2024.00
- Daily resistance: $2045.30 and $2061.60
- Spot gold has to trade over $2024.00 to be in an intraday bullish zone and target $2061.00 and $2077.50 and more.
- Mild sell off will be there if spot gold falls below $2025.00.
- Crash or sell off will be there if spot gold does not break $2061.00 by Thursday close.
- Spot gold should break the $2000-$2100 trading range and form a new range anytime in the next seven days. Buyers and sellers both need to be careful. However, use any fall of more than $80.00 (in the next seven days) to go long with a stop loss below $1940.00 for early February.
Disclaimer: Any opinions as to the commentary, market information, and future direction of prices of specific currencies, metals and commodities reflect the views o the individual analyst, In no event shall Insignia Consultants or its employees have any liability for any losses incurred in connection with any decision made, action or inaction taken by any party in reliance upon the information provided in this material; or in any delays, inaccuracies, errors in, or omissions of Information. Nothing in this article is, or should be construed as, investment advice. All analyses used herein are subjective opinions of the author and should not be consider7ed as specific investment advice. Investors/Traders must consider all relevant risk factors including their own personal financial situation before trading. Prepared by Chintan Karnani Website www.insigniaconsultants.in.
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NOTES TO THE ABOVE REPORT
- ALL VIEWS ARE INTRADAY UNLESS OTHERWISE SPECIFIED
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- THE TIME GIVEN IN THE REPORT IS THE TIME OF COMPLETION OF REPORT
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