-- Published: Friday, 20 March 2020 | Print | Disqus
There will be position squaring and rebuilding for next week. Copper, crude oil, nickel and other industrial metals can rise as result. If silver falls below $9.50 or trades below $9.50, then it will imply that the corona virus has made Asia (except China) as its home ground.
Economic data releases are useless at this point of time. Bank of England has cut its key interest rates to 0.10% in a second interest rate cut. World over zero interest rate is the norm. If and when the world gets over the corona virus, then gold price will break past $2000. Right now I am looking at $1270-$1830 wider range till end June. Why $1270? Gold prices can crash if the corona virus spreads quickly Indian subcontinent. The big Indian summer gold demand season starts from 24th March and will continue to early July. April marriages of all religions have been postponed or cut down to a few near ones. Gold is an important component for marriages in India in all religions.
The next four weeks are very crucial for Asia (except China). In China the corona virus spread has virtually topped out. While the rest of Asia it just the beginning.
Corona virus news from USA – collected from the internet.
The United States warned Americans yesterday to return home or stay abroad indefinitely. Walmart Inc said yesterday it would hire more than 150,000 hourly workers in the United States, citing a jump in shoppers due to the coronavirus pandemic.
Amazon.com Inc made a similar move earlier this week, announcing it would hire 100,000 warehouse and delivery workers in the United States as the virus outbreak boosts online orders. Our view: Look at US economy or your nation’s growth in totality. There will be jobless in some and in some sectors like consumer perishables there can be a massive jump in temporary hiring. Then invest. Re arrange your portfolio next month and not now. In my view most of the retail investors are now already invested.
Buy far dated call options copper, silver, nickel and crude oil. Buy far dated I imply February 2021 and more. Gold is a great long term investment at current price without a doubt.
COMEX GOLD APRIL 2020 – current price $1484.55
· Gold needs to trade over $1450-$1460 zone to rise to $1530 and $1572.
· Sellers will be there below $1570 and crash only below $1440.
NYMEX CRUDE OIL (April 2020) - current price $26.90
· Fundamentals are still bearish for crude oil.
· If India goes under lockdown, then crude oil prices will fall to $15.00.
· Right now crude oil can rise to $33.00 by next week as long as it trades over $22-$23.00.
· If crude oil falls below $22.00 then chances of $13.50 will be very high.
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
ALL VIEWS ARE INTRADAY UNLESS OTHERWISE SPECIFIED
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-- Published: Friday, 20 March 2020 | E-Mail | Print | Source: GoldSeek.com