Trade very carefully till tomorrow. There will be big one way price moves in gold and silver anytime. US dollar Index has slightly gained. One needs to wait till tomorrow to decide on the US dollar Index trading strategy. However if the US dollar Index trades over 94.00 from tomorrow till Friday close, then chances of another rise to 97.00-98.00 will be very high. Right now cautious optimism in the US dollar.
There are a lot more bullish factors for gold like zero bond yields in the USA and Eurozone, US-China trade tensions, US presidential election uncertainty, covid uncertainty etc. Sharp corrections are possible in gold and silver anytime till 11th August. Corrections in gold and silver should be used to invest.
July witnessed a sharp rise in Industrial activity in the Eurozone, France, USA and China. Industrial metals should remain firm as result of demand from across the globe combined with reduced mine supplies.
A “V” shaped price move can happen in gold and silver anytime. If gold and silver rise tomorrow after the release of July ADP jobs numbers then $2100 will be easily breached by gold. Silver will near $30.00. Big five trading sessions ahead for gold and silver.
The big question which I am asking myself is “Will sharp gains in the US dollar Index (If any) this week cause a sharp correction in gold and silver or will momentum continue to defy everything”? Sharp corrections and sustained in gold and silver will be there only if (a) US July jobs report suggest a recovery in American hiring (b) Covid cases fall sharply by Friday (before the release of US July nonfarm payrolls). If these two conditions are not met, then sharp correction will be a ping-pong ball. It will be a touch and go fall.
COMEX SILVER SEPTEMBER 2020 – current price $2450.50
- Silver needs to trade over $2360-$2390 zone today to rise to $2605.00 and $2769.
- Sellers will be there only below $2422 and crash below $2380.
MCX SILVER SEPTEMBER 2020 – current price Rs.65930.00
Support: 64420-65121
Resistance: 67076
View: Silver can rise to 67076 and 68404 (by tomorrow) as long as it trades over 64733. Silver will crash only if it trades below 64733.
Trading Strategy: Buy at 64420 stop loss 63729 for 67076 or buy if silver trades over 66376 stop loss below 65784 for 67076 – whichever comes first.
(Prices in Indian rupees above)About the author
