-- Published: Wednesday, 29 January 2020 | Print | Disqus
To me the fall in gold price is just a correction and nothing else. Traders will prefer not to get caught off guard in FOMC tonight. Margin calls on stocks and crude oil also resulted in traders closing long positions in gold. Technical sellers came into play once gold started falling.
Silver got knocked down as it failed to trade over $18.00. The combination of gold price fall along with sell off in industrial metals resulted in silver crashing. There was a technical sell off as well.
China will open on Monday. India has a budget on Saturday. Budget on Saturday in India implies very big changes in the offing. Indian financial markets are open on Saturday. Next week we also have the various US jobs numbers, January nonfarm payrolls and January private ADP jobs numbers among other key US economic data releases. Trend in all metals and energies can keep on changing every day.
Corona virus is spreading. Companies have restricted employees from travelling to China. Most global companies and domestic Chinese companies have asked employees to work from home till middle of February and also get themselves quarantined if they travelled to the regions affected by corona virus. Nations and global corporations have banned travel to regions affected by corona virus. Most of believe that the economic impact will be limited. I do not believe so. 2020 global growth will slowdown as a result of corona virus. Nations will continue with easy monetary policy. Interest rate cuts and liquidity injection will continue till April. Sharp corrections should be used to invest in gold.
In India selected stocks can easily give over fifty percent returns this year. However physical gold and gold futures should be a part of everyone’s investment portfolio. A five percent investment in physical silver is also recommended. Retail participation in G-secs (government bonds) is almost negligible. I love G-secs and recommend everyone to invest in G-secs.
COMEX SILVER MARCH 2020 – current price $1740.20
· Crash will be there only below $1723 to $1713.30-$1692.90.
· Silver has to trade over $1755-$1760 zone to be in intraday bullish zone.
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: Wednesday, 29 January 2020 | E-Mail | Print | Source: GoldSeek.com