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Asian Metals Market Update: Buy the Dips in Gold & Silver

Astra Zenca has suspended covid vaccine trial. Traders and investors have been way ahead in discounting vaccine news. It is a buy on sharp dips strategy in gold and silver. Gold and silver can remain in correction mode for a few days to two weeks. But once again I will call them a correction and not a bear market rally.

Fools were chasing global stock markets. Stock had to correct. Liquidity pressures in the stock market resulted in a selloff in gold, silver and crude oil yesterday. Gold and silver price moves will be mainly dependent on the direction of US stock futures today and tomorrow. I expect today and till Friday. The selloff party in global stock markets will come to an end before the FOMC next week.

Brexit news and European central bank meeting (tomorrow) will shake the market. World might see the beginning of a short term currency war if the US dollar Index sinks and trades below 88 before the US presidential elections in November. The Bank of England, European central bank and bank of Japan will take corrective steps if their currency gains sharply against the US dollar in the next two months. Gold will be only winner is this cat and mouse currency game among central bankers.

Trend after the FOMC meet will be sustainable. Till then all prices in gold, silver, copper, crude oil and the US dollar Index will be fake or misleading. Investing in far dated crude oil call options is also a very sound investing strategy.

COMEX SILVER DECEMBER 2020 – current price $2684.50

  • Silver needs to trade over $2550 till next week to rise to $3000.
  • Silver will see a big crash if it trades below $2550.

NYMEX CRUDE OIL (October)  - current price $36.32

  • Crude oil needs to trade over $33.40 till future close to rise to $42.70.
  • Massive crash will be there if crude oil trades below $33.40.
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