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Asian Metals Market Update: Hedge funds are short

Traders are expecting US Dollar Index to continue to gain. Nations (like Japan, India etc) will not interfere to prevent currency weakness. UK Pound is expected to fall below parity versus the US dollar. Euro/usd is expected to continue to fall. Bank of Japan officials have suggested that they will not interfere to defend 145.00 (usd/jpy). Yen, Euro, Gbp, constitutes nearly eighty percent of the US dollar index. The general perception is that gold will trade with a softer bias long as it US dollar index continue to rise.

Hedge funds are short in gold, silver, and copper. There can be profit booking by hedge funds in short positions either this week or next week. Pullback rallies can be there in gold, silver, and copper anytime. Pullback rally and bear market rallies are same words.

Gold bulls hope that gold breaks and trades over $1655 (spot gold) till tomorrow. There will be sellers on rise as long spot gold does not break $1655. Spot silver has to trade over $18.35 to be in an intraday bullish zone.

Spot Silver: (current market price $18.58)

  • Support: $18.28
  • Resistance: $19.14
  • Spot silver will see another wave of sell off if it trades below $18.28 to $17.69.
  • Spot silver needs to trade over $18.90 to be in an intraday bullish zone.

ZINC SPOT (closing price on 23rd September $3003.50)

  • 100 week MA: $3216.00.
  • 200 week MA: $2792.00.
  • 50 day MA: $3280.00.
  • Zinc needs to trade over $2906 to rise to $3216 and $3510.
  • Right now or in the next two weeks, zinc can fall to $2792 and $2610 and $2455 in case it does not break and trade over $3216.
  • Watch $2906. Zinc can move $500 either side from $2906.

LME ALUMINUM SPOT (closing price on 23rd September $2171.00)

  • 200 week MA: $2168.00.
  • 50 month MA: $2143.00.
  • 100 month MA: $1994.00.
  • 50 day MA: $2370.00
  • Aluminum has to trade over $1994.00 till end October to rise to $2513 and $2837.
  • A daily close below $2143 for three consecutive days will pave the way for $1994.

LME NICKEL SPOT 2022 (closing price on 23rd September $23389.50)

  • 100 day MA: $24071.00.
  • 200 day MA: $25651.00.
  • 100 week MA: $21316.00.
  • Nickel needs to trade over $21949-$22156 zone this week to rise to $25856 and $27107.
  • There will be a sell off if nickel trades below $22807 to $22156 and $20923.
  • Nickel needs a daily close over $24071 for the whole of the week to zoom.

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