-- Published: Friday, 20 July 2018 | Print | Disqus
Gold and silver should rise today and the US dollar should fall after Trump’s comments on interest rate hikes. The US dollar is rising and precious metals are falling on expectation of quicker pace of interest rate hikes by the Federal Reserve and other central banks. The US dollar could bomb against the major currencies if the Federal Reserve does not act independently.
Short positions in gold and silver should get converted into long positions if the US dollar reverses its gains.
Economics & Trump trade wars
President Donald Trump criticized the Federal Reserve’s interest-rate increases. Trump was concerned that interest rate hikes would put the United States at a disadvantage. Higher interest rates and a strong dollar typically go hand-in-hand, because better yields attract foreign investment.
A stronger US dollar will be a matter to concern for US exports. Trump and his allout war against China and other key importing nations will be effective only if the US dollar remains weak. If the US dollar is strong, then all the trade wars will be ineffective. Currency depreciation of Chinese Yuan, euro etc will nullify the higher tariff. Trump in a way is right.
I believe in central bank independence. Central bank decisions are mostly influenced by politics. I hope the Federal Reserve ignores Trump and continues to act independently.
Now is the time to invest in gold and silver. More uncertainty now.
COMEX SILVER SEPTEMBER 2018 – current price $1532.00
Bullish over $1514.00 with $1562.00 and $1596.00 as price target
Bearish below $1496.00 with $1587.00 and $1466.00 as price target
Neutral Zone between: $1496.00-$1514.00
Silver can rise to $1565-$1596 zone as long as it trades over the $1496-$1515 zone.
· Another wave of sell off will be there only below $1496.
MCX SILVER SEPTEMBER 2018 – previous day close Rs.38294.
· There is a mini double bottom around 37900. Silver needs to trade over 37900 to rise to 38898.
· Sell off will be there below 37900 to 37377.
· A daily close below 37691 today will be very bearish for silver for next week.
(Prices in Indian Rupees above)
HAPPY PROFITABLE TRADING & HAVE A GREAT WEEKEND
Disclaimer: Any opinions as to the commentary, market information, and future direction of prices of specific currencies, crypto currencies, metals and commodities reflect the views of the individual analyst, In no event shall Insignia Consultants or its employees have 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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-- Published: Friday, 20 July 2018 | E-Mail | Print | Source: GoldSeek.com