Gold and silver fell overnight on technical trade. Welcome August is the message. Gold and silver have a critical three day trading session till Monday. Boom or bust, there will be nothing in between. Short sellers will be there on every rise as long as gold does not break $1300-$1310 zone. Copper will be the key to silver prices. Silver price is partially supported by firmness in copper prices. A correction in copper can result in silver getting a technical breakdown. News and new demand will be key to gold and silver.
Crude oil is trading on its own. Long term there is change as Saudis diversify from their dependence to USA as a major buyer to China and other nations where payment is received in non US dollar forms. We are nearing an automobile revolution where the world will switch from gasoline to electric based cars. These electric cars will take a decade to come into hand of the masses and also to get a big charging point eco system. Some the metals which will be used in these electric cars and the whole electric eco system will get a price zoom. It is better to search for such metals and invest for the long term in such metals.
Technically gold and silver are mildly bearish. Copper and crude oil are in a neutral zone. I am not going to go long in gold and silver at current prices. I will prefer to wait till US session and then take a call.
There is lot of speculation that custom duty on gold imports will be cut in India over the coming weeks/months. I do not foresee any increase in Indian gold demand as gold smugglers are there in every nook and corner of India. Premiums can come down in gold. Only official gold demand will rise. Indian people are more than willing to pay the state than to the smugglers. But price difference between cash gold and cheque gold (payment by cheque) is huge.
COMEX COPPER SEPTEMBER 2017 – current price $289.10
Bullish over $291.10 with $296.90 -$301.20 as price target
Bearish below $286.50 with $283.20 and $278.80 as price target
Neutral Zone between: $286.50-$291.10
·Copper can fall to $278.10 in case if does not break $296.90.
·Initial support is at $286.
Disclaimer:Any opinions as to the commentary, market information, and future direction of prices of specific currencies, metals and commodities reflect the views of the individual analyst, In no event shall Insignia Consultants or its employeeshave any liability for any losses incurred in connection with any decision made, action or inaction taken by any party in reliance upon the information provided in this material; or in any delays, inaccuracies, errors in, or omissions of Information.Nothing in this article is, or should be construed as, investment advice. Prepared by Chintan Karnani
Disclosure:Insignia consultants or it employees do not have any trading positions on the trading strategies mentioned above. Our clients do have positions on the trading strategies mentioned in the above report.
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NOTES TO THE ABOVE REPORT
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UK session starts around 1:00 pm Indian Standard Time (+5:30 GMT) -- after the release of LME daily inventories
US session starts at 6pm pm Indian Standard Time (+5:30 GMT)
PLEASE NOTE: HOLDS MEANS HOLDS ON DAILY CLOSING BASIS
PLEASE USE APPROPRIATE STOP LOSSES ON INTRA DAY TRADES TO LIMIT LOSSES.
THE TIME GIVEN IN THE REPORT IS THE TIME OF COMPLETION OF REPORT
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