Fear is driving global financial markets. Gold and silver are falling in US term price. Gold is firm in almost every nation. Silver has crashed even with a falling local currency. Most of the traders are sitting on cash before the release of US CPI numbers and PPI numbers. Recession is a big theme now.
If gold continues to fall, then I will not be surprised if it reaches $1620-$1650 zone. Fear trade causes unthinkable excesses in any asset class including precious metals as well. Asian currencies will weaken between five percent to ten percent this year if gold price continues to fall and may even trade around $1600. There will be an inverse correlation between gold prices and most Asian currencies. Physical stock holders of gold and silver in Asia need not worry an iota. Gold and silver price will form a multiyear bottom (in local currency in Asia) before the end of the quarter. Day traders, jobbers, and very short-term investors have to be watchful till the FOMC meeting on 27th July.
JP Morgan traders have been manipulating gold and silver price for years
Jurors were told that JP Morgan has been ripping off the gold and silver markets for years. Lucy Jennings, a prosecutor with the Justice Department's fraud section, said, "This case is about a criminal conspiracy inside one of Wall Street's largest banks," adding, "To make more money for themselves, they decided to cheat."
Three former JPM employees are in the firing line were all charged with racketeering conspiracy as well as conspiring to commit price manipulation, wire fraud, commodities fraud and spoofing from 2008 to 2016. Spoofing was banned by law in 2010. It involves vast orders that traders cancel before they can be executed in a bid to push prices in the direction they want to make their actual trades profitable.
OUR VIEW ON JP MORGAN SPOOFING TRADES
JP Morgan and along with a bunch of unknown associates have been spoofing and manipulating markets for decades in all asset classes. JP Morgan, Morgan Stanley, and other large hedge funds based in USA and UK are able to manipulate as everything is priced in US dollars the world over. They are indirectly US/UK government-owned corporations. They have unlimited access to US dollar supplies. Commodities, in general, are now being less priced in US dollars and more in local currencies during bilateral trade. The ability to manipulate will reduce with the passing of each year. The value of the US dollar will be zilch by the end of the decade. Let’s focus on our own investment and beat JP Morgan and other bastards. They are nearing their dying days.
Day traders and jobbers remain on the sidelines. Daily Closing price of tomorrow, Thursday and Friday is the key. There can be a price reversal to bullish if CPI and PPI numbers sink. Do not get overexcited and be bullish in gold, silver, and copper. Be vigilant as sentiment is bearish.
Spot Silver: (current market price $19.08)
- Key intraday supports: $18.02 and $18.59
- Key intraday resistances: $19.60 and $19.92
- Silver has to trade over $18.80 today to be in an intraday bullish zone and rise to $19.45 and $20.10.
- Silver will crash only if it trades below $18.80 today to $18.59 and $18.02.
- I am against new intraday buying at current price.
NYMEX CRUDE OIL (August 2022) (current market price $102.56)
- Crude oil has to trade over $99.70 to be in an intraday bullish zone and rise to $108.40 and $112.70
- Crude oil will crash only if it trades below $99.70 and $95.40.
- Two hundred day moving average around $93.10 is the key long term support.
COMEX COPPER SEPTEMBER 2022 (current market price $341.25)
- Copper needs to trade over $333.40 to rise to $352 and $362.
- Copper will crash if it trades below $333.40 only.
MCX CRUDE OIL JULY (current market price Rs.8159.00)
- 100 day SMA: Rs.8274.00
- 50 day SMA: Rs.8649.00
- Key support: Rs.8015.00
- Key resistance: Rs.8274.00 and Rs.8386.00
- MCX Crude oil will crash if it trades below Rs.8015 to Rs.7944 and Rs.7560.
- MCX Crude oil will also crash if it does not break and trade over Rs.8386 by Wednesday close.
(prices are in Indian rupees above)