Gold and silver have the best chance to rise to $1920 and $30.50 this week or next week. There will be short covering if gold and silver are able to rise till Tuesday. Gold ETF demand will zoom if gold price breaks past $1878. Silver will see another wave of rise if it manages to break and trade over $28.00. $28.00 is the key price to watch for silver.
US April NFP indicates June interest rate hike is over. I am confident of a September hike by the Federal Reserve. A September interest rate hike by the Federal Reserve will be hyper inflationary. Inflation will ensure that gold price targets $2000 over the coming months. Central banks may say that they will ignore inflation for growth. But the traders and investors knows that the real value of paper assets is collapsing partially due to deflated purchasing power of his US dollar. Bitcoin/crypto currencies cannot absorb all the decline in purchasing power of currencies. A large extent will move to gold.
The pace of rise of copper and all metal prices and the future trend gives us a very good indication of sharp rise in prices of everything. Your real cost of living will rise over fourty percent this year. Asians are hit by the pandemic. Asians are not getting $1200 per week free money like the Americans. Inflation is on the verge of hitting hard very soon. Central banks and political masters are saying this will not last long. Hyperinflation can last between six months to one year. A financial doomsday is on the verge of arriving for Indians and most Asian nations. Gold is the only hedge against a financial doomsday.
Distress sale of gold should rise in India
Current covid second wave will result in big rise in distress gold sale in India. Money or investments cannot buy life. People are forced to make a distress selling of gold to save the life of their friends and relatives. Hospitalization, medicines and medical equipment’s have been hoarded and black marketed in every nook and corner of India. The poor and the middle are making distress selling of gold, gold jewelery and jewelery in general to save the life of near and dear ones. The current life threating situation in India has set an example to the world for the need to invest in physical gold and only physical gold. My heart and head bows down for the people of my nation who have sold every asset but still unable to save the life of near one and dear ones. Generations are getting wiped out financially and emotionally in India. The only culprit (in my view) are our democratically elected political masters. There is a collective administrative failure and political failure in India. Gold demand in India will nosedive in April to June quarter. Gold imports in India will also crash in second quarter.
Today, as usual trend of US dollar Index, trend of US ten year bond yields and technical resistances will play its role in dictating gold price and silver price.
COMEX GOLD JUNE 2021 – current price $1832.40
- Gold has to break and trade over $1851.00 to rise to $1892.80 and $1920.00.
- Gold will crash only if $1851.00 is not broken.
COPPER JULY 2021 – current price $481.90
- Key weekly resistance is at $490.60. Copper needs to break and trade over $490.60 to rise to $506.40 and $517.00.
- Copper will crash if $490.60 is not broken by tomorrow.