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Asian Metals Market Update: Consolidation phase

Enjoy the consolidation phase in gold and silver as it will not last long. Month end position squaring and rebuilding will start from today and will continue till 1st September. Gold and silver will sell off IF and ONLY IF there are some very large sellers and/or the US dollar Index zooms past 95.00.

Indian gold jewelry demand will be there till 31st September. “Pitrapaksh/shradh period” starts on 2nd September to 17th September. This will be followed by 13th month of the Hindu Calendar which is called by “Maal Maas or Adhik Mass”. “Maal Maas or Adhik Mass” will be from 18th September to 14th October. We Hindus do not buy any jewelry or finalize any marriage or other auspicious family events. Buying physical gold is not forbidden. One should use sharp dips between 2nd September and 14th October to buy physical gold and physical silver instead jewelry. Physical gold demand by jewelers (In India) will be limited in this period, unless prices crash.

US presidential election result news, US dollar Index and US ten year bond yields will directly affect gold and silver prices. As long as there is no technical breakdown. Sharp dips should be used to go long.

COMEX SILVER SEPTEMBER 2020 – current price $2747.00

  • Silver needs to trade over $2600-$2640 zone till next week to rise to $2871 and $2956.
  • Sellers will be there if silver trades below $2710.
  • Silver will crash if it (a) Trades below $2640 and/or (b) Silver does not break $2940 by 28th August.

COMEX COPPER SEPTEMBER 2020 – current price $299.80

  • Copper is looking bullish at the moment and looks headed for $303 and $309 as long as it trades over $296.00.
  • Copper will crash if it trades below $296 today..
  • There can be some weekend profit taking in USA session.
  • Day traders and jobbers can buy first and sell next with strict trailing stop loss.
  • New investment or new short term long position in copper is preferable only next week.
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