Technical are slightly bullish for gold and silver. Copper and base metals are bullish. There will be a short covering rally today, if gold and silver rise after Powell’s speech at Jackson hole. Powell speaks after 7:30 pm Indian Time (GMT+5:30).
Powell has been overhyped. Big bets have been placed today on both sides in every asset class. There can be some burst moves in precious metals and energies. Copper and base metals are a buy on crash strategy irrespective of Powell’s speech.
London is closed on Monday. Summer vacation will end in UK on Monday. US August nonfarm payrolls is on 2nd September or next Friday. USA is closed on 5th September. American summer vacation will come to an end on 5th September.
Next week will be transition week from an end to summer in USA, UK, and Europe to more serious spring and pre-Christmas. Anything can happen next week. There can be abrupt one-way price move next week.
Trade and invest very carefully from today till 6th September.
COMEX GOLD DECEMBER 2022 (current market price $1769.10)
- Key intraday support: $1748.30
- Key intraday resistance: $1782.20
- Gold needs to trade over $1757.70 to rise to $1782.20 and $1794.40
- There will be sell off only if gold trades below $1757.70 between 1:00 pm Indian Time and 10:30 pm Indian time to $1748.30 and $1725.10.
- Gold will rise very quickly if it trades over $1775.10 after London opens to $1800+.
NICKEL (LME SPOT) MEDIUM TERM VIEW
- Nickel is on the verge of forming a medium term bottom. Nickel should form a medium term bottom anytime from now and the first week of October.
- Short term: Upside will be limited and met with selling pressures till $24000-$25000 is not convincingly broken.
- Long term: Nickel needs to trade over $17000-$18000 zone to target $29900 and $37700.
- Bearish trend will be there only if nickel does not break and trade over $25000 on or after 17th October 2022.
- Watch $21000. Nickel can move $7000 either side from $21000 before 17th October 2022.
LME Nickel scam issues and necessary changes to LME functioning will be done anytime after 7th September. The pending legal issues will also be addressed after 7th September. Just buy/sell in the technical till 7th September. Base metal pricing mechanism as a whole can be changed significantly by the LME. LME has lost the faith of buyers and sellers in LME. LME will do everything to ensure that it remains the authoritative place for base metal pricing.
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