Gold and silver are trading in firm but steady price range. Momentum and sentiment for silver is much more bullish than gold. Biden signing the Paris climate change accord and his other measures to prevent global warming will result in higher demand for silver and copper. Copper and silver, both are needed to prevent global warming. Overall medium term trend is bullish for copper and silver. Short term corrections will be there.
Gold is case where short term traders and investors want to get out while new long term investors want to get in. Short term bearishness versus long term bullishness. I do not think that gold price is in a medium term bearish zone at $1835. To me as long as gold prices trade over $1700, every sharp dips and sharp corrections is nothing but an investment opportunity. Day traders and very short term traders can use a sell first and buy next strategy, (depending on news and technical factors).
Trend after the FOMC meet next week is important for gold and silver from a short term perspective. If gold and silver rise after FOMC and till US January nonfarm payrolls on 5th February, then get ready for a new all-time high.
COMEX GOLD FEBRUARY 2021 – current price $1836.00
- Two hundred day moving average at $1859.00 is the key resistance.
- Key short term support is at $1814.30.
- Gold will rise to $1859.00 and $1887.20 as long as it trades over $1814.30.
- Gold needs a daily close below $1814.30 for three consecutive days to be in short term bearish zone.
COPPER MARCH 2021 – current price $360.40
- Copper needs to trade over $353.50 this week to rise to $374.40 and $381.70.
- Copper will move into a short term bearish phase if there is a daily close below $353.50 for four consecutive and/or copper does not break $381.70 by 7th February.