-- Published: Wednesday, 8 January 2020 | Print | Disqus
Comex February futures rose to $1613.30 as I prepare this report. Big jump of over $30 (from yesterday’s close) on Iran’s retaliation. American and European reaction will be closely watched. Whether the reaction by Iran will turn into a full fledged war or it is just a one off move remains to be seen. Traders and all alike will prefer to be long in gold than short. Yesterday USA session price moves (in gold and silver) suggested a buildup in long position. Sellers were very less in USA session. A break of $1600 is very significant for gold. If gold prices manage to trade over $1600 then $1708 will be achieved by Friday. (I am serious).
Globally economy has not yet recovered from last year’s shock. Direct correlation between gold price and crude oil price is not good for global economy. The longer they last the chances of another big economic slowdown will be very high. Global political leaders will try to diffuse the Iran and Persian Gulf fragile situation. It remains to be seen whether they are successful. War has been used by political leaders to get over domestic political crisis. Everyone knows that Trump is using Iran as a scapegoat to get over this impeachment and also get a second term. Global cost of this year’s American election will be very high. 2020 has just begun. Events happening from 1st January till date is just a trailer of things to come. Financial markets will see very high volatility as the year progresses. Prudence and caution is advised in all investment but still use sharp dips in gold and silver to increase portfolio to alteast twenty percent this year (from my suggested ten percent last year.)
Remain on the sidelines today. There has been some fall. Day has just begun. Use trailing stop losses. Gold and silver will continue to rise if and only if traders are glued to developments in Iran.
Only gold investment demand will be there. Gold jewelery demand all over Asia will be more or less zero.
COMEX GOLD FEBRUARY 2020 – current price $1588.10
· Gold needs to trade over $1600-$1610 zone till Friday to rise to $1662.80 and $1707.50.
· Sellers will be there below $1585.
· Corrections upto $1550 will be a part and parcel of another massive rally.
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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PLEASE NOTE: HOLDS MEANS HOLDS ON DAILY CLOSING BASIS
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-- Published: Wednesday, 8 January 2020 | E-Mail | Print | Source: GoldSeek.com