-- Published: Tuesday, 7 January 2020 | Print | Disqus
Focus will now shift to US December private ADP job numbers tomorrow and Friday’s US December nonfarm payrolls. Both these numbers should come it at or over 160,000 for gold and silver to see selling pressure.
Use sharp dips to invest for Easter in both gold and silver. Trade pact with China and Brexit has already been factored by the markets. Trump has started 2020 with a fragile Middle east and North Africa region. Turkey is sending troops to Libya. Sharp short term corrections should be used to invest. Only some positive economic news globally can put gold in a short term bear market. Towards the end of the month, if Chinese New Year gold demand comes in below expectation then gold prices can also sell off. Gold price will end 2020 in the same way it has started the year.
Any sharp reduction of crude oil supply from Libya will only act as a catalyst to the already firm crude price. Crude oil will go through a cyclical period of low demand for the next two months. Global holiday season is over. Asian travel season will begin after Middle of March. Short term demand fundamentals of crude oil is bearish. Crude oil price is all about futures positioning at the moment. Far dated natural gas call options looks good for investing. Bear market in natural gas will not last long that is why I prefer to invest in far dated call options in NG instead of buying outright NG futures.
YESTERDAY IN INDIA – READ CAREFULLY – A BIT ON “UNFIX” GOLD
Jewelers in India buy physical gold in “Unfix” mode. Unfix implies that gold is purchased BUT price is fixed at a later date. Yesterday’s price rise forced most of the jewelers to fix the price of physical gold. Most of the price fixing for “Unfix” gold was between Rs.42000 and Rs.42600 per ten grams. The same has been with physical silver. My experience since 2003, tells me that chances of Indian physical gold price forming a short term top will be very high. However I will prefer to wait till 13th January to give a final verdict (on gold very short term trend).
I am not investing in gold and silver for the very short term at current price. I will prefer to wait till Friday and then take a call. Long term investing is different from short term investing and day trading.
COMEX SILVER MARCH 2020 – current price $1802.70
· Silver will for a short term top in case if does not break and trade over $1883 by next week. If silver falls then it will not stop before $1700 and $1630.
· Investor will prefer gold over silver in case silver does not rise over the next two weeks.
· Today silver needs to trade over $1790-$1800 zone to try and rise to $1870-$1880 zone.
· Crash will be there below $1790.
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 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. All analyses used herein are subjective opinions of the author and should not be considered as specific investment advice. Investors/Traders must consider all relevant risk factors including their own personal financial situation before trading. Websitewww.insigniaconsultants.in. Prepared by Chintan Karnani
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NOTES TO THE ABOVE REPORT
ALL VIEWS ARE INTRADAY UNLESS OTHERWISE SPECIFIED
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-- Published: Tuesday, 7 January 2020 | E-Mail | Print | Source: GoldSeek.com