-- Published: Tuesday, 28 January 2020 | Print | Disqus
Gold and silver fell yesterday (from the day’s high) after USA opened as traders booked profit on long positions. Traders have started ignoring the corona virus and started focusing on other economic issues and political issues. FOMC meet tomorrow can have surprises in light of Chinese corona virus. Corona virus can have a very big impact on Chinese consumer spending in February. Industrial metals have been impacted and can be subject to more selling pressure if the corona virus spreads next week.
Right now the fall in industrial metals is just a correction and not a short term bearish trend. Short term bearish trend will be there if industrial metals fall in the first two weeks of February.
Another thing which haunts me is that how will China fulfill its obligation with USA under the trade deal signed this month. Will another trade war be started or will China fulfill trade deal this year (due to US elections) and break the same next week. The spread of the Chinese corona virus will have a long lasting impact on Chinese consumer spending. Change in Chinese consumer spending will make it difficult for Chinese political leadership to fulfill their trade deal obligations with USA and other nations. The Chinese year of rat is testing the political leadership in China. Gold investment demand in China will skyrocket this year. I expect gold investment from China to be a major catalyst for gold price to near $2000.
COMEX GOLD FEBRUARY 2020 – current price $1579.55
· Gold needs to trade over $1566.10 to rise to $1590 and $1601.
· Crash or sell off will be there if gold does not break $1590.
· Better to remain on the sidelines in gold today.
MCX Copper February 2020: (previous day close/CMP Rs.427.50)
· Copper needs to trade over 424 today to rise to 432.10 and 436.
· Crash will be there only below 424 to 419.10 and 413.60.
· Momentum is down.
(prices in Indian rupees above).
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
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PLEASE NOTE: HOLDS MEANS HOLDS ON DAILY CLOSING BASIS
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-- Published: Tuesday, 28 January 2020 | E-Mail | Print | Source: GoldSeek.com