-- Published: Monday, 2 March 2020 | Print | Disqus
Trade very carefully today. Central banks are all out to prevent a big crash in stock markets. Crude oil and copper are bullish at the moment.
I used to write a monthly column for a jewelry magazine in India between 2007 and 2012. (Now I do not write articles for any media other than www.goldseek.com). In one of the articles I had written that gold prices will crash when human’s survival is questioned. Friday’s gold price crash reflected somewhat. People were just frantically selling everything (including gold) to get cash and stock up supplies and be able to meet future contingencies. Cash and gold are the kings in such uncertain times.
Short sellers are there in every major crashes. Algorithm traders further added to the selling pressure in gold. Everyone will prefer to invest in gold over silver now. Friday’s silver crash was not the first one which I have seen. But silver has always taken a very long time to recover from crashes.
Globally economy will be affected in a big way IF corona virus spreads beyond 17th March then there will be serious layoffs of even permanent workers worldwide. Its impact on global slowdown will be far more sustained than I can ever imagine. However if the global spread of the corona virus is contained by 17th March then stocks will form a long term bottom and gold if it rises till then can form a medium term top, However if corona virus spreads beyond 17th March, then $2000 will just be an ordinary number.
Silver has to trade over $1563 in March to be in long term bullish zone and target $1767 and $1900. No doubt momentum is down. But quick crash will be there if and only if silver trades below $1563 to $1509.70 and $1411.50.
NYMEX CRUDE OIL (March 2020) - current price $46.10
· Crude oil needs to trade over $45.50 to rise to $48.10 and $50.00.
· Short sellers keep on booking profit as long as crude oil does not fall below $42.00.
· Fundamentally crude oil is still bearish. There can be very sharp bear market rallies.
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, 2 March 2020 | E-Mail | Print | Source: GoldSeek.com