-- Published: Tuesday, 4 February 2020 | Print | Disqus
I used to identify “corona” with my favorite beer. But now “corona is a dreaded word globally due to virus. Nations and central banks are intervening, talking and doing all sorts of things to alleviate concerns of the negative impact on economy. Financial markets are now manipulated in every nation. Trend from Monday (10th February) will be the key to gold and silver price. Key US economic data will be released this week. Central bank meetings will not have any impact till March. Focus will just be on economics and fundamentals for the next two months.
Copper, Silver and nickel are great long term investing opportunities. One needs to buy far dated call options in crude oil. A twelve month call option with a strike price of over $66 should be cheap and an excellent investment opportunity for Nymex crude oil.
I will also prefer to invest in silver twelve month call option with a strike price of $22.00 and more. Silver has lost faith among short term investors. Long term investors are also not aggressively investing in silver. Call options are relatively cheap in silver as compared to gold.
U.S. factory activity rebounded in January after contracting for five straight months amid a surge in new orders, according to the Institute for Supply Management (ISM). Our view: Corona virus in China will give a big boost to US manufacturing and will also create more manufacturing jobs in USA. The long term damage to Chinese manufacturing has been done by Corona virus. The corona virus will give a big boost to Trump to get reelected for second term as US president.
Gold investment demand in ETF and all forms are rising at historical record high with passing of each day. If gold prices rise next week, then gold price will form a long term top on or before 7th April and thereafter move in to a bearish trend for the rest of the year. (Assuming corona virus fears get vanished.) Corona virus will have a much bigger impact to global economy than SARS. The only good thing is that it is in China. Chinese leaders make the quickest tough people friendly decisions unlike India where petty politics is always played on people’s friendly decision.
COMEX GOLD APRIL 2020 – current price $1580.85
· Gold needs to trade over $1569-$1574 zone to rise to $1592.50 and $1609.10.
· Crash will be there if (a) Gold trades below $1569 to $1543 and/or (b) Gold does not break $1598.
· Remain on the sidelines.
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
Disclosure: Insignia consultants or it employees do not have any trading positions on the trading strategies mentioned above. Our clients do have positions on the trading strategies mentioned in the above report.
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NOTES TO THE ABOVE REPORT
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-- Published: Tuesday, 4 February 2020 | E-Mail | Print | Source: GoldSeek.com