-- Published: Wednesday, 12 February 2020 | Print | Disqus
Global manufacturers are waiting till end February to decide on their outsourcing strategy. If there is supply disruptions from China from March onwards then they will look to India and other Asian nations for their supplies. US economic numbers are not affecting gold price. Trend of all metals and energies on or after 18th February will be the key. China will fully reopen by then.
There will be a serious reduction in retail consumption as well as business consumption in February not just in China but world over. No one knows the extent of the consumption drag caused by corona virus. Do not go by the prevailing hyper optimism in stocks or global economy. They are a like a paper building. A mild wind and they can start to crumble once again.
Softer interest rate regime will ensure that medium term to long term trend is bullish in gold. There will be demand on big price falls. Gold, industrial metals and global stock markets all cannot rise at the same time. Someone will have to fall or crash.
The coronavirus outbreak will cut growth in global oil demand by a quarter this year compared to earlier forecasts. China’s Huanggang city, one of the hardest hit by the coronavirus outbreak, is still facing a severe virus situation and a lack of medical supplies, its Communist Party boss said yesterday. Crude oil is fundamentally bearish at the moment. It should be trading at $42 at fair value including speculative premium.
Remain on the sidelines in gold and silver today. Use a buy on dips strategy in crude oil with a stop loss below $48.00 for next week. Copper if it rises today and tomorrow will zoom to $270 very quickly.
COMEX GOLD APRIL 2020 – current price $1571.05
· Gold can fall to $1551 as long as it trades below $1586.
· Crash or sell off will be there if gold trades below $1566 today.
· Gold needs to trade over $1577-$1583 zone to rise further.
MCX Copper February 2020: (previous day close/CMP Rs.434.55)
· 200 day moving average at 436.60 is the key resistance. Copper needs to break and trade over 436.60 to rise to 440.10 and 443.60.
· Overall trend is bullish as long as copper trades over 431.10.
(prices are 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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-- Published: Wednesday, 12 February 2020 | E-Mail | Print | Source: GoldSeek.com