Gold rose, silver is firm while the US dollar Index pared some of this week’s gains on expectation that inflation in USA will form a short term top in July month. A soft US July producer price index numbers today can result in gold rising to $1790 and dumping of US dollar Index.
“Taper Timing” is now the key theme which will dominate the trading headlines for the next two weeks. Stimulus money supply reduction by Federal Reserve is more or less now factored in by the markets. Bets are now getting placed on “Taper Timing”. “Early taper” bullion crashes more. “Delayed/Later Taper” gold and silver will retest $1835 and $26.00 and US dollar Index will fall to 88.00 and more. Every day, every week and every hour this so called “Taper Timing” expectation is changing. Hence the volatility. Every few days some Federal Reserve officials influence the markets by commenting on “Taper” and “Taper Timing”.
There will be short covering and a new wave of rise if gold and silver are able to rise today and tomorrow. Physical buyers will by more if trend indicates revival of bulls. There will be a short squeeze if gold and silver price are able to rise (albeit slowly) till 17th August. Cautious optimism till 17th August over continuance of bullish trend.
COMEX PLATINUM OCTOBER 2021 – current price $1008.10
- 50 day moving average:$1067.70
- 100 week moving average: $978.30
- 200 week moving average: $926.30
- Platinum fell to a low of $954.00 on Monday and thereafter recovered.
- Medium term View: Platinum can rise to $1147.20, $1211 and $1281.40 as long as it trades over $926.30 (two hundred week moving average) on daily closing basis.
- Intraday Platinum has to trade over $978.30 (one hundred week moving average) of $978.30 to rise to this months high of $1065.90.
Platinum and silver are the most undervalued among all the industrial metals and industrial. India’s MCX commodity exchange had launched Platinum futures in 2009 but the same was closed, may be due to lack of volumes and liquidity. Platinum is my favourite metal to invest for the long term after silver. Platinum jewellery demand in India will rise multi-fold over the next few years. I hope that Indians will see able to trade and invest in Platinum futures soon.
About the author
