-- Published: Monday, 3 February 2020 | Print | Disqus
Massive Chinese central bank intervention has resulted in gold trading flat, silver falling and copper rising. Chinese evening session will be closed in metals and energy futures.
1. China’s central bank said it will inject 1.2 trillion yuan ($173.8 billion) worth of liquidity into the markets via reverse repo operations today.
2. China’s central bank unexpectedly lowered the interest rates on reverse repurchase agreements by 10 basis points.
The above measures by the Chinese will resulted in short covering in all industrial metals. Gold can fall and then rise. Price moves will be two way.
Factors which can affect all metals and energies this week:
· Extent of global spread of Chinese Corona Virus. “Extent” is the key word here.
· Various US job numbers (a) January Private ADP numbers (b) US January nonfarm payrolls.
· Long term technical break out in case of gold and silver.
· Long term technical breakdown in case of copper and crude oil.
Gold and silver have a corona virus premium. Most airlines have stopped flights to China till 14th February. More and more nations are confirming people with corona virus. To me corona virus is scary in the sense that even a common cold or running nose can turn out to be case of corona virus. “Extent” in the sense that the pace of rise of gold and silver will be dependent on the pace of global spread of the corona virus disease. If the corona corona virus does not spread much globally But continues to spread just within China then gold and silver can correct.
COMEX SILVER MARCH 2020 – current price $1782.30
· Silver needs to trade over $1759 to rise to $1811 and $1830.
· Crash will be there below $1759.
· There will be a sell off if silver falls after London opens.
MCX Crude oil 19th February 2020: (previous day close/CMP Rs.3694.00)
- Key weekly support is at 3595.
- Key weekly resistance is at 3771.
- Trend is down. But crude oil is nearing oversold conditions in the short term.
- Crude oil can rise to 3917 and 4100 this week as long as it trades over 3595.
- Sell off will be there below 3595 to 3487 and 3280.
- I am against new selling unless crude oil trades below 3595 this week with strict trailing stop loss.
(prices are in Indian rupees above. The above is a weekly view and a part of the weekly report)
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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-- Published: Monday, 3 February 2020 | E-Mail | Print | Source: GoldSeek.com