-- Published: Thursday, 2 August 2018 | Print | Disqus
Gold and silver fell yesterday as traders remained on the sidelines. A key reason for gold and silver to fall is that they are not attracting new investors. The current bunch of gold investors are not investing aggressively. Physical buyers are fence sitters. Today gold and silver demand will be very high in Asia. Asian demand should prevent a big correction in prices. Physical premiums in gold and silver should rise today.
The FOMC has indicated of a September interest rate hike. There was nothing new in it. As long as strong labor conditions exist in the USA, interest rates will continue to rise. For any slowdown in interest rate hikes, jobs creation should reach a saturation point.
Economics & Trump trade wars
Industrial metals slumped as most of the global manufacturing numbers fell in July. Corporates are pessimistic on short term manufacturing growth. Trump and his trade war continues as he intends to slap more tariffs on Chinese goods. Chinese retaliation is being awaited. China is taking measures to spruce domestic demand as a first baby step to reduce dependence on US exports.
The USA is targeting China where it hits the most. (a) Tariffs are being imposed on high labor intensive Chinese goods. China can counter this partially by using India and other nations as a dumping ground. (b) High end technology goods are being targeting which China does not have any short term solutions. In this case China does not have any choice but to accept demands by the USA. (c) Agro products retaliation by both nations does not have any effect on their respective economic growth.
Focus is on the bank of England meeting today and the as usual overhyped US July nonfarm payrolls. To me all the drama by Trump and his trade war theme is pre conceived plan for the upcoming US senate elections. Nationalism buys votes. Trump is using war and trade war as means to win over the American voters for the November senate elections. All the destabilizing Trump tweets will disappear after the US senate elections are over.
COMEX SILVER SEPTEMBER 2018 – current price $1543.50
Bullish over $1540.00 with $1564.00 and $1579.00 as price target
Bearish below $1533.00 with $1522.50 and $1502.50 as price target
Neutral Zone between: $1533-$1540.00
Silver will break free from the $1520-$1570 wide trading range and form a new range anytime soon.
· Sellers will be there only below $1539 today.
MCX NICKEL AUGUST 2018 – previous day close Rs.915.20
· The triple bottom at 907.30 is the key support.
· There will be another wave of sell off below 907.30 to 891.70 and 879.40.
· Trend is down.
· Nickel needs to trade over 926.30 to be in intraday bullish zone and rise to 954.20 and 970.
(prices in Indian rupees above)
HAPPY PROFITABLE TRADING
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
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NOTES TO THE ABOVE REPORT
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-- Published: Thursday, 2 August 2018 | E-Mail | Print | Source: GoldSeek.com