Asian Metals Market Update for 9th September

September 09, 2024

0.25% or 0.50% interest rate cut, either can be there next week by the Federal Reserve. Some traders believe that the Federal Reserve will cut interest rates aggressively initially (September, November, December, end of January ) followed by a pause or a very slow pace of interest rate cut. Gold will rise, and Silver will rise.

Kamala Harris is expected to be the next president of the USA. I expect the gold price to double (and much more) in the next fifty months in case Kamala Harris becomes the president of the USA. A war monger who will ensure that the Ukraine war never ends plus East Asian nations is converted to a mini Iraq or a North Korea. De-dollarization will be at its last cycle if Kamala Harris is the next president of the USA.

Positive economic data news is needed from China for an end to off and on sell-off in copper and base metals. Chinese central bank is not buying gold at the moment. India and Russia's central banks are increasing gold reserves. Central banks are increasing gold reserves to prevent indirect rule by the USA and its NATO rallies. Global trade is controlled by the USA and its NATO allies. Indirect control of any nation happens when its key national policies are dictated by the key members of NATO alliance.

Copper and base metals are overall bullish on a combination of interest rate cuts and potential revival of Chinese economy. There will increase in the frequency of short-term price crashes in copper and base metals. Crude oil traders should invest in naked call options for end December and end March.

I would also prefer to buy natural gas call options for the end of December and the end of March but only if premiums are very low. Spreads in natural gas indicate a bullish trend this winter season.

US August CPI numbers will not have any significant impact on all asset classes unless it is on the higher side. I am expecting traders to be long in gold, silver, and copper before the Federal Reserve meeting on 18th September (next Wednesday).

COMEX SILVER DECEMBER 2024

Key weekly support: $2664.30, $2730.50 and $2781.90
Key weekly resistance: $2906.00, $3004.30, and $3048.20
Silver December needs to trade over $2730.00 this week to rise to $2972.30, $3048.00 and more.
Crash or sell-off will be there if silver December does not break $2929.00 by the 13th September close.

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