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Asian Metals Market Update: Very crucial few days from a technical perspective

Today and tomorrow’s close is very crucial for gold and silver from a technical perspective. Chinas factory gate inflation is at a twenty six year high. Global focus will be on inflation and its impact on growth and monetary policy. Yesterday there was muted reaction to higher PPI numbers from USA in the sense that gold did not break past $1840 resistance.

I am slightly changing my gold resistance zone. $1848-$1878 is the key short term resistance zone. Gold needs to break and trade over this zone for the rest of the year to target $2000 and more. Failure of spot gold to break $1878 by 10th December will cause a fall to $1650 and more. However right now gold is bullish in the short term as long as it trades over $1790.

Option traders will start taking positions for end march after the release of today’s US consumer price index. Gold price can move $200 either side from $1830 before Christmas or early January. Energy price trend and energy price outlook will play a key role in determining gold’s short term price trend apart from technical.

There will be a coronavirus free world in 2022. Most traders are now looking at sectors which will outperform next year and have started placing bets on the same. My personal bet is on silver, natural gas (on crashes), copper and nickel in metals and energies space. In 2021 crypto currency traders have made a historical high profit. This crypto bubble will burst by end April 2022. Once the crypto bubble bursts then gold price will reach stratosphere. I am not against crypto currencies. I just fear the pace of rise of crypto currencies in the last six months and the hyper bullish outlook for next year.

Spot Gold: Spot gold has to trade over $1813.00-$1820 zone today to rise to $1849.70 and $1879.30. (a) Gold will crash only if initial resistance of $1842.80 is not broken before days close.

Spot Silver: Spot silver can rise to $25.06 and $25.83 as long as it trades over $23.91.

NYMEX CRUDE OIL (December)  - current price $84.27

  • Crude oil has to trade over $83.10 to rise to $87.60.
  • Crude oil will crash only if it trades below $83.10 to $82.20 and $79.40.

COPPER DECEMBER 2021 – current price $435.40

  • Copper can rise to $440.10 and $447.60 as long as it trades over $430-$431 zone.
  • Copper will crash if it trades below $430.00 in London.

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