-- Published: Wednesday, 11 March 2020 | Print | Disqus
It is just fear of recession and fear that a long term investing opportunity will be lost that is deciding investment strategy. Traders and find managers are booking profit in every investment (other than stocks) to invest for the long term in stocks. Most believe that stock markets are great long term investing opportunity.
Every investment has crashed due to corona virus. Gold, silver, crude oil, natural gas, US dollar Index, stocks and bonds all have seen major crashes in the last one month. Nothing is a safe investment. Gold is a great long term investment. Crude oil looks good.
Corona virus situation is not good both in India and USA. Both these nations are not telling us the real picture to prevent panic and bloodshed in financial markets. Even natural gas has zoomed yesterday. This suggests that traders are closing their short positions in NG and investing in stocks or meeting or met margin call in other investment. Euro/usd and natural gas (in my view) had the largest short positions in financial markets. Both of them have risen in March mainly due to closing of short positions. People have also booked profit in US dollar Index longs and also went short in US dollar Index after unscheduled interest rate cut by the Federal Reserve last week.
Money printing along with direct transfer cannot be called stimulus measures of central banks. The sole motive of every large central banker is to prevent “too big to fail large corporations”. I do not think tiny and small business will be positively affected by the central banks once in a lifetime measures. Hard assets will now attract more and more long term investors.
Some of the large business who are cash rich will be buying over the small and tiny business. There will be a massive another big round of Oligopolization of the world. Common man cost of living will double in the next three years if worlds sees massive Oligopolization towards the last quarter of the year. Oligopolization is always good for gold bulls. Short term corrections in gold should be used to invest for the long term.
COMEX GOLD APRIL 2020 – current price $1657.60
· Gold needs to trade over $1640 to rise to $1694 and $1710.
· Crash will be there if trades below $1640 today to $1619 and $1596.
MCX COPPER March 2020 – previous day close Rs.427.80.
· Copper needs to trade over 422.00 till Friday to rise to 434 and 439.
· Crash or another wave of sell off will be there below 422.00.
· There can be very sharp two way moves.
(prices 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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PLEASE NOTE: HOLDS MEANS HOLDS ON DAILY CLOSING BASIS
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-- Published: Wednesday, 11 March 2020 | E-Mail | Print | Source: GoldSeek.com
