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Asian Metals Update August-24-2020: Volatility in Silver

Traders will start taking positions for September and next week’s August US nonfarm payrolls. Volatility will rise. Silver and copper September futures are expiring on 31st August. Trade very carefully in silver and copper this week as there can be abrupt price moves. The FED’s Jackson Hole conference is there and surprises in it will affect everything. Summer season in USA and Europe will end in two weeks’ time. Trading volumes in gold and silver will see a significant rise from next week. Just trade in the technical.

Everyone is bullish in gold and silver in the long term. Not a single report is there in the social media and the internet which says that gold and silver are bearish in a post covid world. I have been hyper bullish on gold and silver since 2003 and continue to hold the same views.

But short term trading, weekly trading and day trading is the need of the hour in current covid pandemic times. Salaries have been reduced or stable, cost of survival (in both urban and rural areas) is rising sharply all over the world. We all need to be a day trader or a short term trader with at least ten percent of your savings in it. Everyone needs more income from day trading and/or short term trading just to meet current standards of living or save for future exigencies. So please do not base your day trading strategy and short term investment strategy on the hyper bullish investment sentiment in gold and silver and other metals and energies.

In March/April when Indian stock markets had a historical crash, everyone was suggesting a massive further fall. India’s nifty and sensex managed to trade over two hundred month moving average (for a few days), and I became bullish on Indian stocks.  This is the best example of how too much reading of social media/web news can prevent you from making good profit. I have been telling my clients in India since early February (when news of Chinese coronavirus became viral all over the world), that Indian stock markets can crash anytime. No one listened. I am just trying to create an awareness of why you should not base your invest decision based on social media/web hype and news. Be cautious. Do not be a late entrant in the last phase of a bull market or last phase of a bear market in any investment. (I do not charge anything for my views on Indian stock markets as I use it for my own trading/investment).

COMEX SILVER SEPTEMBER 2020 – current price $2651.00

  • Silver needs to trade over $2570-$2610 zone to rise to $2868.
  • Crash will be there if silver trades below $2570.

COMEX COPPER SEPTEMBER 2020 – current price $293.30

  • There can be sharp pullback rallies to $301.10 and $309.00 in copper this week as long as it trades over $285.00-$288 zone.
  • Copper will crash if it trades below $285 this week to $278.80 and $273.10,
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