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Asian Metals Market Update: Overall trend is very bullish for gold

Overall trend is very bullish for gold and a bit cautious for silver. Brexit issues, second wave of covid and US presidential elections are still the short term positive factors form gold and silver. More correction in intraday price moves cannot be ruled out in gold and silver. However use sharp dips till tomorrow to go long for next week.

Indian gold jewelry demand will be superb if gold and silver remain at current price till Saturday. I am banking of higher cyclical Indian gold demand and Indian silver demand to give prices the first push. Thereafter speculators are every ready to enter and jerk up the prices of gold and silver.

Trade very carefully till Friday. These are not easy days to trade. Short term investors of gold and silver, have the patience. It is a matter of “when” gold and silver will start its one way rise. Gold prices have a history of consolidating for few weeks to a few month, whenever there is correction from a rally. Silver traders have to be more careful than gold traders and gold investors.

Silver traders please read carefully

Silver is not easy to trade and invest. We have received numerous phone calls from all over India of small and tiny traders loosing their capital in MCX silver trades. These are people to who traded/invested in MCX silver December futures with a margin between Rs.50,000 to Rs.400,000. Most of these people were first time traders of gold and silver. Writing over is very easy to buy or sell or book loss. Actual trading is extremely difficult particularly when a loss is booked in a trade. It is your money. Trade very carefully in silver. Trading/investing in gold in my view is easier and safer than gold.

COMEX SILVER DECEMBER 2020 – current price $2425.50

  • Silver needs to trade over $2340 to rise to $2582 and $2717 (by next week).
  • Silver will crash only if it falls below $2340.
  • A daily close below $2400 today and continuously till Friday will start a short term bearish phase in silver.

COMEX COPPER DECEMBER 2020 – current price $305.10

  • Copper needs to trade over $299.10 till Friday to rise to $313.10.
  • Sellers will be there only if copper trades below $301.00
  • Next three weeks for Copper: There is a big short term support at $299.10. Copper will try to rise to $313.30 and $330.30 as long as it manages to trade over $299.10.
  • Coppers needs to trade below $299.10 to crash to $286.90 and $265.80.
  • The next three weeks price trend will decide the fate of copper price till early January. Cautious optimism for now.
  • Any announcement of additional stimulus by USA will result in copper prices rising quickly to $330.30.

Disclaimer: Any opinions as to the commentary, market information, and future direction of prices of specific currencies, metals and commodities reflect the views of the individual analyst, In no event shall Insignia Consultants or its employees  have any liability for any losses incurred in connection with any decision made, action or inaction taken by any party in reliance upon the information provided in this material; or in any delays, inaccuracies, errors in, or omissions of Information. Nothing in this article is, or should be construed as, investment advice. All analyses used herein are subjective opinions of the author and should not be considered as specific investment advice. Investors/Traders must consider all relevant risk factors including their own personal financial situation before trading. Prepared by Chintan Karnani

Disclosure: Insignia consultants or it employees do not have any trading positions on the trading strategies mentioned above. Our clients do have positions on the trading strategies mentioned in the above report.

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