There are lot of market moving US economic data releases. Traders and investor are switching focus to economy and economics apart from vaccine. The pace of rise of job creation will be high for the next few months. There will be an all-round increase in hiring on expectation that the worst is behind us. Covid vaccine will result in a big leap to historical global growth next year. If the economy disappoints then gold price will start rising once again. Start focusing more on economy than being obsessive with covid vaccine news.
President-elect Joe Biden’s Treasury secretary will need Congress to approve re-use of $455 billion in funds that the Trump administration is taking back from Federal Reserve and other pandemic lending programs. Our View: I am sure that it will be passed. Gold’s fall can end anytime as a result of this news. However most people will use sharp rise to exit their gold investment. They are stuck in long positions or invested in ETF or invested in physical gold.
Malabar gold (India’s largest gold dealer and India’s largest gold jeweler) knew that gold prices will crash post Diwali. This was the reason why they were selling physical gold at a discount of three percent during the Diwali festival season. I had written in the earlier daily report that chances of sharp correction in gold price (post Diwali) has been a historical trend. History has been repeated this as well.
I am banking on short covering in gold and silver (before Thanksgiving) for price to rise. In case short covering does not happen then gold and silver will nosedive.
COMEX GOLD DECEMBER 2020 – current price $1801.70
- Gold needs to trade over $1784.70 today to rise to $1844 and $1860.00.
- Gold will crash only if it trades below $1784.70 to $1754.30 and $1719.20
NYMEX CRUDE OIL (December) - current price $45.31
- Crude oil can rise to $48.60 and $52.00 (by next week) as long as it trades over $43.30.
- There will be sellers only if crude oil trades below $43.30.
- Trend is bullish.
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