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Asian Metals Market Update: Chinese demand for industrial metals is rising

There will be buyers on dips as long as gold trades over $1885. Silver will zoom if it trades over $25.20 today till day’s close. Brexit, US political stalemate over additional stimulus are key reason for gold and silver price to rise. There will be a technical breakout if gold and silver rise today.

Chinese demand for industrial metals is rising with passing of each month. Mine supplies for industrial metals is yet to reach pre pandemic levels. Chinese demand for industrial metals is over pre pandemic levels. Chinese demand controls the price of copper, nickel and all industrial metals. Industrial metals should rise. If copper, zinc and nickel rise till Monday then get ready for at least ten percent more rise in the short term.

Gold demand in India and gold jewelery demand in India will rise today and till Sunday. Yesterday’s price rise in gold and silver will be favorable to India’s gold demand and silver demand. People have a tendency of postponing demand when gold/silver prices fall or remain stable. Today’s price rise in gold and silver should be bullish for India gold demand and Indian silver demand. Jewelers in India will be very busy in their shops.

India’s push for electric vehicles for the next few years makes me very bullish on nickel and aluminum. Nickel and aluminum are an integral part of any electric vehicle. (apart from copper). The electric vehicle revolution in India has not yet started. India’s demand for copper, nickel and aluminum should rise multifold over the next three years. The real nickel price should be double of current price. Nickel price has much more potential to rise than most industrial metals.

Investment in mining stocks is a good long term investment. There are many mining stocks in India as well. Traders and investors who treat industrial metals are a pure cyclical play will incur losses atleast till next year.

COMEX GOLD DECEMBER 2020 – current price $1922.00

  • Gold needs to trade over $1927.10 till Friday to rise to $1960.80 and $1993.80.
  • Corrections upto $1888 will be a part of the bullish trend.

COMEX COPPER DECEMBER 2020 – current price $316.80

  • Copper has to trade over $313.60 to rise to $324.00
  • Sellers will be there only if copper trades below $313.60/
  • If copper rises today and tomorrow then it will not stop before $324.00 and $331.90.

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